This paper investigates the climate impact of central bank refinancing operations, with a focus on the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTRO) III programme. Read more

The Grantham Research Institute Working Papers series is aimed at stimulating discussion among researchers across a wide range of academic disciplines. The series is aimed at technical and specialist audiences, usually other researchers in relevant fields. The papers have been reviewed by at least one internal referee before publication and the process is overseen by the series editors, Simon Dikau, Ben Filewod and Gregor Singer. Often the content of working papers is submitted for review by academic journals and so in some cases an updated version of a paper may be available.
This paper investigates the climate impact of central bank refinancing operations, with a focus on the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTRO) III programme. Read more
This working paper presents evidence that litigation reduces firm value. This means that climate litigation should be considered a relevant financial risk by lenders, financial regulators and governments. Read more
This paper presents a new method for estimating the effects of regulations when treated and control firms compete on the output market. Read more
This paper analyses the dynamic interaction between diverse expectations, investment decisions and climate change mitigation policymaking, exploring how firms invest in low or high carbon capital depending on their beliefs about future carbon prices. Read more
This paper studies the impact of reduced water availability on hydroelectricity generation, a central piece in the low-carbon transition, in Europe and the United States. Read more
This paper empirically estimates the material demand requirements for so-called ‘transition-critical materials’ (TCMs) implied under two climate scenarios and finds potentially serious supply ‘bottlenecks’ for three materials – copper, lithium and nickel – which are exacerbated if the transition is delayed. Read more
This paper explores how changes in air quality in the US have affected ethnic disparities in housing wealth, finding that air quality improvement positively affects house prices for White homeowners much more than for Black homeowners - with a ‘capitalization rate’ that is 63% higher. Read more
In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts. Read more
To help nature-based offsets reach their potential for climate change mitigation, this working paper proposes an alternative approach to managing the issue of market leakage. Read more
This paper investigates just how important intrageneration inequality is for the social cost of carbon, compared to intergenerational inequality and macroeconomic uncertainty. Read more