Workshop on “Transition Risks and Climate Challenges: Interdisciplinary Perspectives”

Climate change can directly affect the stability of financial and economic systems through more frequent and severe disasters affecting the economy, while the uncertainty related to the conversion process towards a low-carbon economy and its timing and speed have the potential to produce negative indirect consequences especially in carbon-intensive sectors.

Despite the growing attention of scholars and policy makers to the risks of climate change for the economy, the debate on how to correctly measure externalities and design adequate policies is still heated. Many economic activities are, in fact, not immune from direct and indirect exposures to climate change and economic transition, particularly through disruptions in global supply chains that amplify both physical and transition risks.

The transmission mechanisms of risks from environmental threats and climate change to economic systems and individual institutions are still largely unknown and their study envisions an interdisciplinary research agenda, where innovative quantitative approaches can play a central role in supporting risk assessment and decision-making.

The Workshop aims to explore and discuss various perspectives on transition risk affecting firms and financial systems. The event will also feature contributions developed as part of the PRIN 2022 PNRR project “Measuring, managing and hedging indirect climate-transition risk”.

PROGRAM

9.45 - 10.15 Welcome Coffee/ Introduction

Morning Session

10.15 - 10.45 Green vs. brown factors and industries
Luca Regis, Università di Torino e Collegio Carlo Alberto

10.45 - 11.15 Spillover effects and Hedging Strategies in the EU ETS
Andrea Flori, Politecnico di Milano

11.15 - 11.45 Navigating Supply Shocks: Sector Resilience and Production Prices through Stochastic Input-Output Modeling
Anna Maria Gambaro, Università del Piemonte Orientale

11.45 - 12.15 Predicting Energy Demand with Tensor Factor Models
Luca Trapin, Università di Bologna

12.15 -13.30 Lunch

Afternoon Session

13.30 - 14.00 The Propagation of Environmental Risk Through Production Networks: Borrowing Cost Effects
Alessandro Dario Lavia, Università di Torino

14.00 - 15:00 Keynote Speaker
Peter Tankov, Institute Polytechnique de Paris

15:00 - 15.15 Coffe break

15.15 - 16.00 Pricing Carbon Allowance Options on Futures: Insights from High-Frequency Data
Giacomo Bormetti, Università degli Studi di Pavia

16.00 - 16.45 The greenness of European green bonds
Elisa Ossola, Università degli Studi di Milano Bicocca

16.45 - 17.00 Conclusion

Participation in the workshop is free, subject to registration.

Local Organizing Committee
Andrea Flori (Politecnico di Milano)
Daniele Marazzina (Politecnico di Milano)

Scientific Committee
Alessia Amighini (Università del Piemonte Orientale)
Andrea Flori (Politecnico di Milano)
Gianluca Fusai (Università del Piemonte Orientale)
Annamaria Gambaro (Università del Piemonte Orientale)
Daniele Marazzina (Politecnico di Milano)
Luca Regis (Università di Torino)
Luca Trapin (Università di Bologna)

The Workshop is funded by the European Union – NextGenerationEU under the National Recovery and Resilience Plan (NRRP), Mission 4, Component 2, Investment 1.1, Call for tender PRIN 2022 PNRR No. 1409 published on 14.9.2022 by the Italian Ministry of University and Research (MUR) (Cod id. P20228CHNL, CUP: D53D23017690001).