Irene Monasterolo

Irene Monasterolo
Wirtschaftsuniversität Wien | WU · Institute for Ecological Economics

PhD agri-food economics

About

95
Publications
24,015
Reads
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1,366
Citations
Additional affiliations
February 2014 - present
Italian National Research Council
Position
  • Researcher

Publications

Publications (95)
Article
Full-text available
There is an urgent need to raise awareness of the risks for generalizing 'flood' within the development of new risk assessment framework and adaptation strategies, and further outline opportunities for ensuring current and future multiform flood risk can be both assessed and reduced in particular for the most vulnerable populations. This requires e...
Article
The role of climate finance policies and instruments in scaling up and derisking low-carbon investments has received growing research attention. However, financial actors’ reaction to climate finance initiatives, and their implications on decarbonization of the economy and on inequality, has not been assessed yet. Our manuscript contributes to addr...
Article
Full-text available
COVID-19 has revealed how challenging it is to manage global, systemic and compounding crises. Like COVID-19, climate change impacts, and maladaptive responses to them, have potential to disrupt societies at multiple scales via networks of trade, finance, mobility and communication, and to impact hardest on the most vulnerable. However, these compl...
Article
The International Monetary Fund (IMF) has been tasked with quickly devising a climate change strategy that helps its members meet collective climate change and development goals while maintaining financial stability. In this paper, we develop an analytical framework of the ‘macro-critical’ nature of climate change and use that framework to examine...
Article
Full-text available
As the impacts of climate change begin to take hold, increased attention is being paid to the consequences that might occur remotely from the location of the initial climatic impact, where impacts and responses are transmitted across one or more borders. As an economy that is highly connected to other regions and countries of the world, the Europea...
Article
The COVID-19 pandemic is generating the largest shock in the global economy since 1929. Although the pandemic has been unprecedented in scale and type, such complex, compounding shocks are not uncommon and are more likely in our modern, interconnected world. Our ability to assess and anticipate compounding risks is limited. Here, we propose a frame...
Article
Full-text available
Natural disasters negatively impact regions and exacerbate socioeconomic vulnerabilities. While the direct impacts of natural disasters are well understood, the channels through which these shocks spread to non-affected regions, still represents an open research question. In this paper we propose modelling socioeconomic systems as spatially-explici...
Article
We develop a Stock-Flow Consistent model to assess the impact of COVID-19 and climate change, both individually and compounding, in the economy and finance. Then, we study the interplay between banks lending decisions and government policy effectiveness in the economic recovery in Mexico. By embedding financial actors and the credit market, and by...
Article
Reaching the UK net-zero emissions target translates into substantial investment requirements into low-carbon energy infrastructure. However, investors are currently not investing sufficiently in renewable energy capacity, leading to the so-called green finance gap. Current energy-economy models generally do not reveal the macroeconomic implication...
Preprint
This session will introduce the theme of the day. It will engage with leading experts in climate finance from academia, central banks and financial regulators in a stock-taking exercise to critically discuss international examples of progress in climate financial risk assessment and the challenges associated which are currently faced by investors a...
Article
Les deux économistes Stefano Battiston et Irene Monasterolo observent, dans une tribune au « Monde », que les anticipations des investisseurs peuvent aussi aller contre l’objectif de limitation du réchauffement climatique
Article
The financial system-the ecosystem of investors (e.g., banks, investment funds, insurance), markets, and instruments-is often considered to play an enabling role in climate mitigation pathways to a low-carbon transition (1). But it can also have a hampering role, e.g., if investors' perceptions of low risk from a missed transition and low opportuni...
Article
El Fondo Monetario Internacional (FMI) necesita diseñar rápidamente una estrategia de cambio climático que ayude a sus miembros a cumplir sus objetivos colectivos de cambio climático y desarrollo. En este breve informe se describen los aspectos macrocríticos del cambio climático que deberían incorporarse a la actividad de supervisión del FMI y se e...
Article
A successful low-carbon transition requires the introduction of policies aimed at aligning investments to the climate and sustainability targets. In this regard, a global Carbon Tax (CT) and a revision of the microprudential banking framework via a Green Supporting Factor (GSF) have been advocated but two main knowledge gaps remain. First, the unde...
Article
Climate change has been recently recognised as a new source of risk for the financial system. Over the last years, several central banks and financial supervisors have recommended that investors and financial institutions need to assess their exposure to climate-related financial risks. Central banks and financial supervisors have also started desi...
Article
Full-text available
Climate change poses several risks to the value of financial assets and to financial stability. In this study, we estimate the exposure of the Austrian banking sector to climate risks that might arise from a disorderly transition to a carbon-neutral economy. To this end, we identify climate policy-relevant sectors (CPRSs), i.e. sectors which are pa...
Article
Well-known academic and non-academic institutions call for a new approach in economics able to capture features of modern economies including, but not limited to, complexity, non-equilibrium and uncertainty. In this paper, we provide a systematic review of ecological macroeconomic models that are suitable for the investigation of low-carbon energy...
Article
The role of finance in the low-carbon transition, as well as the deep uncertainty and endogeneity of climate finance risk, are currently neglected by climate economic models. This leads to a false sense of control in terms of risks and opportunities associated with the low-carbon transition. Further, it prevents people from understanding under whic...
Article
The financial system could help achieve the global climate targets by aligning investments to sustainability. However, investors are largely exposed to carbon-intensive assets that could become stranded, thus delaying the low-carbon transition and bringing new sources of risk for financial stability, i.e., climate-related financial risks. Here, we...
Preprint
Full-text available
Investments are largely allocated to sectors of economic activities that are at odds with the climate targets, thus exposing countries' economies and investors' portfolios to the risk of carbon stranded assets. In this context, a main knowledge gap is represented by the poor understanding of financial actors' perception of the climate-related finan...
Chapter
Pandemics are disruptive events that have profound consequences for society and the economy. This volume aims to present an analysis of the economic impact of COVID-19 and its likely consequences for our future. This is achieved by drawing from the expertise of authors who specialise in a wide range of fields including fiscal and monetary policy, b...
Article
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Barriers and opportunities to align finance to sustainability Lessons learned from knowledge co-production in Austria RiskFinPorto – Policy Brief
Article
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Recent political events in the European Union (EU) highlighted a growing dissatisfaction of citizens in several EU regions with the EU institutions’ management of socio-economic and financial challenges. This eventually led to a political legitimization crisis, whose drivers are partially shared among EU regions and partially area-specific. However...
Conference Paper
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The Joint Research Centre (JRC) of the European Commission and the European Banking Authority (EBA) organized a workshop on November 18-19 at the JRC in Ispra (Italy) on “Banking Regulation and Sustainability”. The joint JRC-EBA Workshop moved forward on the various challenges related to integrating sustainability into the EU banking regulation fra...
Article
It is increasingly recognized that a transition to sustainable finance is crucial to scale up the low-carbon investments needed to achieve the global climate targets. A main barrier to portfolios' decarbonization is the lack of conclusive evidence on whether low-carbon investments add value to a portfolio, and on whether markets react to climate an...
Article
Full-text available
It is increasingly recognized that a transition to sustainable finance is crucial to scale up the low-carbon investments needed to achieve the global climate targets. A main barrier to portfolios' decarbonization is the lack of conclusive evidence on whether low-carbon investments add value to a portfolio, and on whether markets react to climate an...
Article
The assessment of the socio-economic and financial impacts of climate change represents a main source of uncertainty for policy makers and investors. However, traditional climate economics and financial risk models are not properly equipped to consider the characteristics of climate risks and the opportunities from climate-alignment, being constrai...
Article
Do citizens show different patterns of European identification? Are the results driven by specific regional characteristics? Has Cohesion Policy an influence on EU citizens' identification? With the aim to answer these questions, we develop a novel probabilistic model that allows classification of citizens according to their different patterns of i...
Article
Full-text available
In 1972, The Limits to Growth, using the World3 System Dynamics model, modeled for the first time the long-term risk of food security, which would emerge from the complex relation between capital and population growth within the limits of the planet. In this paper, we present a novel system dynamics model to explore the short-term dynamics of the f...
Preprint
Full-text available
Assessing the short-term socioeconomic impacts of climate-led disasters on food trade networks requires new bottom-up models and vulnerability metrics rooted in complexity theory. Indeed, such shocks could generate cascading socioeconomic losses across the networks layers where emerging agents' responses could trigger tipping points. We contribute...
Poster
Full-text available
RiskFinPorto - Analysis of Carbon Risks in Financial Markets and Austrian Portfolios Leaving the bubble - lose portfolio risk in five easy steps
Preprint
Full-text available
There is growing awareness that aligning the real economy to the climate and sustainability targets requires the introduction of stable policies. In this regard, a global Carbon Tax (CT)) and a revision of the microprudential banking framework via a Green Supporting Factor (GSF), have been advocated. However, our understanding of the conditions und...
Chapter
Climate change is posing daunting challenges to our societies. Such challenges are increasingly recognized by policymakers, practitioners and academics. Indeed, to limit the negative impact of human activities on the climate, 193 governments signed, in December 2015, the “Paris Agreement” aimed at stabilizing global temperature on 2 °C above pre-in...
Article
There is growing consensus on the fact that fossil fuel subsidies provided by governments in high-income countries represent a misalignment on emissions’ reduction with the global climate agenda. In addition, a discussion emerged on the negative socio-economic and environmental externalities associated with fossil fuel subsidies. Nevertheless, path...
Conference Paper
Full-text available
The transition to sustainable finance is crucial to scale-up low-carbon investments and achieve the 2°C target. Nevertheless, most investors have not yet shifted their portfolios from carbon-intensive to low-carbon assets. One barrier is represented by the limited understanding of to what extent (if any) the market reacts to climate announcements b...
Article
The role of development finance institutions in low‐income and emerging countries is fundamental to provide long‐term capital for investments in climate mitigation and adaptation. Nevertheless, development finance institutions still lack sound and transparent metrics to assess their projects' exposure to climate risks and their impact on global cli...
Article
Existing approaches to assess the economic impact of climate policies tend to overlook the financial sector and to focus only on direct effects of policies on the specific institutional sector they target, neglecting possible feedbacks between sectors, thus, underestimating the overall policy effect. To fill in this gap, we develop a methodology ba...
Article
Fiscal and monetary policies, as well as new financial instruments, could play a key role to meet the Paris Agreement. However, deep uncertainty characterizes their design and their potential effects on growth, financial and credit market stability, and inequality. We develop the EIRIN flow-of-funds behavioural model to simulate the introduction of...
Article
Full-text available
Cuba is an ecological rarity in Latin America and the Caribbean region. Its complex political and economic history shows limited disturbances, extinctions, pollution, and resource depletion by legal or de facto measures. Vast mangroves, wetlands, and forests play key roles in protecting biodiversity and reducing risks of hazards caused or aggravate...
Article
Full-text available
Market-based solutions to climate change are widely advocated by financial actors and policy makers in order to foster a smooth transition to a low-carbon economy. A first important limiting factor to this approach is widely recognized to be the imperfect information on investors’ portfolios’ exposure to climate-related risks. While better disclosu...
Article
Full-text available
The relationship between the energy-food-water nexus and the climate is non-linear, multi-sectoral and time sensitive, incorporating aspects of complexity and risk in climate related decision-making. Current methods of analysis were not built to represent such a complex system and are insufficiently equipped to capture and understand positive and n...
Article
Existing approaches to assess the economic impact of climate policies tend to overlook the financial sector and to focus only on direct effects of policies on the specific institutional sector they target, neglecting possible feedbacks between sectors, thus, underestimating the overall policy effect. To fill in this gap, we develop a methodology ba...
Article
Full-text available
The multidimensionality and complexity of assuring food security in a sustainable and inclusive way requires us to think in systems. Yet, sector specific models or agricultural productivity models are not able by construction to represent the non-linearity and time-dependent nature of the relations underpinning the agri-food system. Two alternative...
Article
The urgency of estimating the impact of climate risks on the �financial system is increasingly recognised among scholars and practitioners. However, traditional risk analysis is inadequate to deal with the intrinsic uncertainty of model estimates of the e�ffects of climate policies and calculations of expected losses/gains can be largely inaccurate...
Article
Recently, the relation between macro-economic and financial stability and climate policy risk (e.g., the introduction of fast decarbonization policies) emerged as prominent concern on the climate policy agenda (Carney, 2015) and it is likely to gain further importance with the recently launched Task Force on Climate-Related Financial Disclosure by...
Article
Full-text available
The nexus represents a multi-dimensional means of scientific enquiry which seeks to describe the complex and non-linear interactions between water, energy, food, with the climate, and further understand wider implications for society. These resources are fundamental for human life but are negatively affected by shocks such as climate change and cha...
Article
To achieve the goal of the Paris Climate agreements, i.e. to limit global temperature increases to as close to 2 deg C above preindustrial levels as possible, the role of fiscal instruments is potentially very important. A global carbon tax, while not likely politically, would be one such instrument. There is great uncertainty about the design of a...
Article
Full-text available
In 1972 the Limits to Growth report was published. It used the World3 model to better understand the dynamics of global systems and their relationship to finite resource availability, land use, and persistent pollution accumulation. The trends of resource depletion and degradation of physical systems which were identified by Limits to Growth have c...
Article
The aim of this paper is to investigate the agri-environmental sustainability whereas statistical improvements provide a considerable backbone for understanding the three E's balance rule, environment, equity, economy. Then, access data to key resources such as food and water are still not fully available and comparable between countries. This open...
Article
Full-text available
Sustainable development is characterized by interconnected social, economic, and ecological aspects and it is at the core value of the worldwide economy. A participatory and accountable framework is a prerequisite for inclusive and sustainable development; so power is redistributed, reducing uncertainty, inequality and promoting shared prosperity....
Conference Paper
In 1972 the Limits to Growth highlighted the role of human activity on the depletion of natural resources and on growth. The unsustainable population-growth path emerged from its newly developed System Dynamics (SD) World 3, whose overshoot scenarios generated a lively debate on what was erroneously conceived as “end of growth” message. Still, its...