A new study published on the international journal Nature Climate Change highlights how climate-related damages impact on the stability of the global banking system.
Damages linked to climate change are likely to increase the frequency of banking crises. Using various tools, including an Agent-Based Climate–Macroeconomic Model, the authors characterize the increase in banking crises, the added fiscal burden of rescuing insolvent banks and its effect on the public debt to GDP ratio, which may increase by as much as a factor of 2. The international team working on this study was led by Francesco Lamperti, an Assistant Professor belonging to EMbeDS and the Institute of Economics of Sant'Anna -- who is also an affiliated Scientist at the RFF-CMCC European Institute on Economics and the Environment . The team included several other researchers from the CMCC Foundation, the RFF-CMCC European Institute on Economics and the Environment, the Sant'Anna School, Bocconi University and the Politecnico di Milano.
The article can be found at: https://doi.org/10.1038/s41558-019-0607-5