Sustainable Macroeconomics, Climate Risks and Energy Transitions: Dynamic Modeling, Empirics, and Policies

Preface
Acknowledgment and Statement of Gratitude
Praise for Sustainable Macroeconomics, Climate Risks and Energy Transitions
Contents
1 Introduction and Overview
	References
2 Sustainable Growth, Welfare, and Short-Termism
	2.1 Sustainability, Natural Wealth, and Welfare
	2.2 Intergenerational Welfare Improvements
	2.3 Market Dynamics and Short-Termism
	2.4 Fossil Fuel Resources: Their Use and the Environment
	2.5 Conclusion
	References
3 Non-sustainable Growth, Resource Extraction, and Boom-Bust Cycles
	3.1 Resource Extraction and Boom-Bust Cycles
	3.2 Foreign Debt Burdens, Borrowing Costs, and Risk Premia
	3.3 Growth Models with Exhaustible Resources
		3.3.1 Basic Growth Model with Resources
		3.3.2 Modeling Resource Exports and Foreign Debt
	3.4 Numerical Solutions—Economic Growth and External Debt Ratios
	3.5 Conclusion
	References
4 Fossil Fuel Resources, Environment, and Climate Change
	4.1 Global Trend in Temperature—The Climate Impact of Fossil Fuels
	4.2 Reserves and Production of Fossil Fuels
	4.3 Gains and Losses from Changes in Resource Prices
	4.4 Conclusion
	References
5 Limits on the Extraction of Fossil Fuels
	5.1 Resource Extraction, Its Management, and Prices
	5.2 Modeling Extraction and Price Dynamics of Non-renewable Resources
	5.3 Numerical Solutions and Results of Resource Extraction Strategies
	5.4 Conclusion
	References
6 Fossil Fuel Resource Depletion, Backstop Technology, and Renewable Energy
	6.1 Introduction to Backstop Technology
	6.2 Trends in Energy Prices and Costs
	6.3 Modeling Extraction Costs and Backstop Technology
	6.4 Numerical Solutions of Growth Models with Backstop Technology
	6.5 Conclusion
	References
7 Transition to a Low-Carbon Energy System
	7.1 Is the Limit of the Carbon Budget Reached?
	7.2 Emission Rise and the Carbon Budget
	7.3 The Electricity Capacity from Renewable Power Generation
	7.4 Environment, Mixed Energy System, and Sustainable Growth
	7.5 Numerical Solutions–Fossil Fuel Extraction, Emission, and Damages
	7.6 Conclusion
	References
8 The Private Sector—Energy Transitions and Financial Market
	8.1 Private Real and Financial Sectors
	8.2 Some Stylized Facts
	8.3 Incumbents and New Entrants in the Energy Sector—Dominant Fossil Fuel-Based Firms
	8.4 Renewable Energy-Based Firms as Entrants
	8.5 Financing Renewable Energy Firms and Capital Cost
	8.6 Green Assets and Portfolio Performance
	8.7 Conclusion
	References
9 The Public Sector—Energy Transition and Fiscal and Monetary Policies
	9.1 Public Sector and Policies
	9.2 Climate-Macro Models with Mitigation and Adaptation
	9.3 Public Sector, Fiscal Policy, and Climate Change
	9.4 Numerical Solutions on Fiscal Policy Actions
	9.5 Disaster Scenarios and Climate Policies
	9.6 Central Banks, Monetary Policy, and Climate Change
	9.7 Conclusion
	References
10 Delaying Forces and Climate Negotiation—Games, Lock-ins, Leakages, and Tipping Points
	10.1 Literature Review
	10.2 Games and Inefficient Outcomes of International Negotiations
	10.3 A Dynamic Climate-Macro Model with Leakages
	10.4 Drivers of Nonlinearities and Tipping Points
	10.5 Conclusion
	References
11 Climate Risks, Sustainable Finance, and Climate Policy
	11.1 Diverse Crises and Delay of Climate Protection Policies
	11.2 Green Innovation and Sustainable Finance
	11.3 Costs of Renewables and Climate Investments
	11.4 Fiscal Policy and Climate Investments
	11.5 Climate Risk and Monetary Policy
	11.6 Global Efforts for Climate Protection
	11.7 Conclusion
	References
12 Concluding Remarks
	References