Having recently moved up on climate policy agenda, the relationship between climate policy risk and macroeconomic and financial stability still remains in the shadow of uncertainty on the role of alternative green fiscal and targeted monetary policies and their systemic implications on financial markets.
This issue was brought up at the 2016 Conference of the European Association for Evolutionary Political Economy, as a part as a dedicated session on climate change co-organized and co-funded by IMPRESSIONS in collaboration with Boston University and the University of Sussex.
The 28th Annual EAEPE Conference took place from 3 to 5 November 2016 in Manchester, UK with this year’s topic being "Industrialisation, Socio-economic Transformation and Institutions". Bringing climate change into the agenda IMPRESSIONS contributed to bring together leading economists and climate experts with the goal to understand complexity and uncertainty in coupled human-natural systems.
The special session aimed to disclose limits of sector based and integrated assessment models for modelling the dynamics of a complex system, such as the green economy. And discuss complementary approaches based on evolutionary economics approaches, linked to complexity science and based on System Dynamics, Agent Based Models and Network Analysis, as possible solutions to fill this modelling gap and contribute to understanding and action.
In so doing, the session shed light on the sources of uncertainty that characterise the relationship between climate policies and macroeconomic and financial stability, in order to contribute improving sustainability models to timely inform the climate policy process.