Project name: SteeriNg financE toWards green technologieS: a hybrid experimental-computational macro approach

Project acronym: NEWS

Principal Investigator: Prof. Alessandro Caiani -  https://www.iusspavia.it/it/rubrica/alessandro-caiani

CUP: I53D23006760001

Description: The objective of the project is to study the behavioral and institutional factors that shape expectations about the green transition, in order to understand how private and public investors can coordinate to support a rapid and orderly transition. We will develop a tractable model of real and financial investments in heterogeneous alternative climate technologies, characterized by different uncertainty profiles in terms of technical efficiency, future diffusion and adoption pathways, and thus expected economic returns. The model will be used to assess how variations in climate policies, risk profiles, and expected returns across assets explain investment behavior in green technologies over different time horizons. To address the structural lack of data, we will design a macroeconomic laboratory experiment to calibrate the model and, in turn, conduct an ex-ante evaluation of different climate policies and credit market designs.

Funding Institution: MUR - Ministero dell’Università e della Ricerca

Project starting date: 30/11/2023 

Project end date: 28/02/2026