Lars Peter Hansen
- Policymakers are working to mitigate the negative effects of climate change. For fiscal policy, this means such proposals as carbon taxes, or the creation of markets in production licenses.
- Some observers are calling for monetary policy to take a more active role, but dangers loom, including risks to central bank independence.
- Some of the most salient negative effects of climate change will likely occur 30 years from now and even further out.
- Current scenario-based stress tests that central banks use to determine the future viability of financial institutions are not equipped to handle the uncertainty that comes with such long timeframes.
Areas of Focus: Climate Change
, Climate Economics
Climate change is an urgent global challenge. EPIC research is helping to assess its impacts, quantify its costs, and identify an efficient set of policies to reduce emissions and adapt...
Climate change will affect every sector of the economy, both locally and globally. EPIC research is quantifying these effects to help guide policymakers, businesses, and individuals working to mitigate and...