Green targeted lending operations in the Euro Area

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dc.contributor.authorLe, Anh H.
dc.contributor.authorUddin, Gazi Salah
dc.contributor.authorLucey, Brian M.
dc.date.accessioned2025-09-04T09:08:46Z
dc.date.available2025-09-04T09:08:46Z
dc.date.issued2024-10
dc.descriptionConcern about climate change has evolved into an urgent issue. Given the recent communication from the European Central Bank (ECB), this paper studies potential green lending policies to mitigate transition risks for the economy.
dc.description.abstractIn this paper, we construct a Dynamic Stochastic General Equilibrium (DSGE) model to examine the implications of dual rates for green lending. We demonstrate that implementing a distinct interest rate for banks engaged in green lending can effectively mitigate transition risks while channeling more capital towards green production sectors and firms for an immediate cut of emissions and net zero emission economy targets. Keywords: Dual Rates, Optimal Policy, Transition Risk
dc.identifier.citationLe, A. H., Uddin, G. S., & Lucey, B. (2024). Green targeted lending operations in the Euro Area. Economics Letters, 243, 111893.
dc.identifier.doihttps://doi.org/10.1016/j.econlet.2024.111893
dc.identifier.urihttps://repository.adu.ac.ae/handle/1/7371
dc.language.isoen
dc.publisherElsevier
dc.titleGreen targeted lending operations in the Euro Area
dc.typeArticle

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