Quotation Baer, Moritz, Campiglio, Emanuele, Deyris, Jerome. 2021. It takes two to dance: Institutional dynamics and climate-related financial policies. Ecological Economics. 190




This article studies how institutional dynamics might affect and be affected by the implementation of climate-related financial policies. First, we propose a three-dimensional framework to distinguish: i) motives for policy implementation (prudential or promotional); ii) policy instruments (informational, incentive-based or quantity-based); and iii) implementing authorities (political or delegated). Second, we use this framework to show how sustainable financial interventions in certain jurisdictions - most notably, Europe - rely predominantly on informational policy instruments to achieve both promotional and prudential objectives. Policymakers in other jurisdictions - e.g. China - also employ incentive- or quantity-based instruments to achieve promotional objectives. Third, we identify two main institutional explanations for this European ‘promotional gap’: i) a reduced intervention of political authorities on the allocation of financial resources; and ii) a stronger independence of technical delegated authorities supervising financial dynamics. This governance configuration leads to an institutional deadlock in which only measures fitting with both political and delegated authorities' objectives can be implemented. Finally, we identify and discuss the possible institutional scenarios that could originate from the current setting, and stress the need for close cooperation between political and delegated authorities.


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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Ecological Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-C, WH-B
Language English
Title It takes two to dance: Institutional dynamics and climate-related financial policies
Volume 190
Year 2021
Reviewed? Y
URL https://api.elsevier.com/content/article/PII:S092180092100269X?httpAccept=text/xml
DOI http://dx.doi.org/10.1016/j.ecolecon.2021.107210
Open Access Y
Open Access Link https://www.sciencedirect.com/science/article/pii/S092180092100269X


Campiglio, Emanuele (Details)
Baer, Moritz (University of Oxford, United Kingdom)
Deyris, Jerome (University of Paris Nanterre, France)
Institute for Ecological Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1909 Resource economics, - management (Details)
2928 Environmental economics (Details)
2959 Sustainable development, sustainable economics (Details)
5371 Macroeconomics (Details)
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