IE University hosts CIVICA conference “Advancing Climate Economics: A Catalyst for Sustainable Development”

16-10-2024

The conference aimed to foster meaningful dialogue and pave the way for ongoing research and collaboration in the field of climate economics.

IE University recently hosted the “Advancing Climate Economics: A Catalyst for Sustainable Development” conference in the IE Tower in Madrid, organised under the CIVICA Thematic Activities Call 2024. This two-day gathering brought together leading academics, policymakers, and climate specialists to explore the role of economic policies in addressing climate change. The event on October 3rd and 4th, 2024, was a valuable platform for discussing innovative solutions to the pressing issues surrounding sustainability and economic transitions. 

The conference kicked off with opening remarks from Isabela de Alcázar, Chief Purpose and Sustainability Officer at IE University, and Pedro Gete, Chair of the Finance Department. Their speeches set a collaborative tone, emphasizing the importance of economic perspectives in achieving sustainable development. 

Valentina Bosetti from Università Bocconi opened the first session with a presentation on Negative Emission Technologies and Climate Cooperation. Professor Bosetti’s research explores the challenges and potential of international cooperation in implementing technologies designed to remove carbon from the atmosphere, a crucial component in the fight against global warming. Romano Tarsia, from The London School of Economics (LSE), facilitated an engaging discussion.

Following this, Jan Starmans from the Stockholm School of Economics, presented Dynamic Green Disclosure Requirements. His paper addressed how varying levels of transparency in green investments could impact adopting and scaling environmentally friendly technologies. Dr. Starmans concluded that a gradual increase in transparency could generate better results than full transparency from the start, sparking thoughtful contributions from the audience. Elaine Zhang (IE University) guided the follow-up discussion with thoughtful insights.

The afternoon session continued with Simon Dietz (LSE), who presented on the Large Economic Benefits of Global Methane Action. Professor Dietz demonstrated that coordinated efforts to reduce methane emissions could deliver substantial economic gains alongside environmental benefits. This time, Josselin Roman, from the European Commission, facilitated the discussion.

The session concluded with Gauthier Vermandel from Ecole Polytechnique, who introduced his work on The New Keynesian Climate Model. This model integrates climate change into standard macroeconomic frameworks and examines how carbon tax policies could influence inflation. IE University professor Ghassane Benmir led an insightful discussion.

He also opened the second day by presenting his paper on The Influence of Natural Capital on Shadow Price Dynamics. Dr. Benmir’s research illustrated how accounting for natural capital—such as forests and water systems—can significantly impact carbon pricing models. The discussion, led by Siqi Wei, also from IE University, provided further ideas into how this approach could reshape climate policy. 

Next, Evi Pappa from Universidad Carlos III de Madrid presented her paper The Green Metamorphosis of a Small Open Economy, co-authored with Florencia S. Airaudo and Hernán D. Seoane. The paper modelled the economic impact of green transitions in Chile, evaluating fiscal tools such as carbon taxes and green subsidies. The presentation sparked a lively discussion, with Bilal Islah (Africa Business School) contributing to the exchange by offering a policy-focused perspective.

The conference concluded with a shared commitment to applying economic tools on climate change. The presentations over the two days underscored the complex interactions between economics, policy, and environmental sustainability. Attendees left with valuable insights into how economic models and policies can support global efforts to mitigate climate change and promote sustainable development.

Article credits: Ghassane Benmir and Josep Gisbert (IE University).

Photo credits: IE University.