[MCN] Drill, baby, drill -> battered banks: Conservation of the economy is getting harder

[Lance Olsen]

Nature Climate Change  October 29 2019
The public costs of climate-induced financial instability

Francesco Lamperti <https://www.nature.com/articles/s41558-019-0607-5#auth-1>, Valentina Bosetti <https://www.nature.com/articles/s41558-019-0607-5#auth-2>, Andrea Roventini <https://www.nature.com/articles/s41558-019-0607-5#auth-3> & Massimo Tavoni <https://www.nature.com/articles/s41558-019-0607-5#auth-4> 
Abstract
https://www.nature.com/articles/s41558-019-0607-5 <https://www.nature.com/articles/s41558-019-0607-5>

Recent evidence suggests that climate change will significantly affect economic growth and several productive elements of modern economies, such as workers and land 1 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR1>,2 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR2>,3 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR3>,4 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR4>. Although historical records indicate that economic shocks might lead to financial instability, few studies have focused on the impact of climate change on the financial actors 5 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR5>,6 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR6>. This paper examines how climate-related damages impact the stability of the global banking system. We use an agent-based climate–macroeconomic model calibrated on stylized facts, future scenarios and climate impact functions 7 <https://www.nature.com/articles/s41558-019-0607-5#ref-CR7> affecting labour and capital. Our results indicate that climate change will increase the frequency of banking crises (26–248%). Rescuing insolvent banks will cause an additional fiscal burden of approximately 5–15% of gross domestic product per year and increase the ratio of public debt to gross domestic product by a factor of 2. We estimate that around 20% of such effects are caused by the deterioration of banks’ balance sheets induced by climate change. Macroprudential regulation attenuates bailout costs, but only moderately. Our results show that leaving the financial system out of climate–economy integrated assessment may lead to an underestimation of climate impacts and that financial regulation can play a role in mitigating them.

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Lifestyles - IPCC - Intergovernmental Panel on Climate Change <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=413>
https://www.ipcc.ch › ipccreports › tar <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=413>
There are two reasons why lifestyles are an issue of climate policy. First, consumption patterns are an important factor in climate change since they have become ...

Intergovernmental Panel on Climate Change - IPCC <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=61>
https://www.ipcc.ch › ipccreports › tar <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=61>
1.4 Global Sustainability and Climate Change Mitigation ... the unsustainable lifestyles and patterns of production and consumption, and explores a broad range ...

[PDF]
Report - IPCC - Intergovernmental Panel on Climate Change <https://report.ipcc.ch/sr15/pdf/sr15_spm_final.pdf>
https://report.ipcc.ch › pdf › sr15_spm_final <https://report.ipcc.ch/sr15/pdf/sr15_spm_final.pdf>
Hydrological Institute (SMHI), Sweden; the Ministry of Environment Natural . ...... lifestyles, including high demand for

Intergovernmental Panel on Climate Change - IPCC <http://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=48>
www.ipcc.ch › ipccreports › tar <http://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=48>
Setting the Stage: Climate Change and Sustainable Development Contents ... 1.2.2 The Costs of Climate Change Mitigation ... 1.4.3.3 “Appropriate” Lifestyles

Intergovernmental Panel on Climate Change - IPCC <http://ipcc.ch/ipccreports/tar/wg2/index.php?idp=350>
ipcc.ch › ipccreports › tar <http://ipcc.ch/ipccreports/tar/wg2/index.php?idp=350>
Today, as the scale of human impact on the environment increases, a range of ... that are exposed to changes in lifestyle and environmental and occupational ...

Intergovernmental Panel on Climate Change - IPCC <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=415>
https://www.ipcc.ch › ipccreports › tar <https://www.ipcc.ch/ipccreports/tar/wg3/index.php?idp=415>
Environmental education could be more effective than it has proved so far if it recognized that human behaviour hinges on lifestyle or self-awareness.

Intergovernmental Panel on Climate Change - IPCC <https://www.ipcc.ch/ipccreports/tar/wg2/index.php?idp=441>
https://www.ipcc.ch › ipccreports › tar <https://www.ipcc.ch/ipccreports/tar/wg2/index.php?idp=441>
... among other factors, demographic changes, urbanization and industrial development, trade and transport demands, and lifestyle changes, the coastal zones ...

Topic 2: Future changes, risks and impacts — IPCC <https://ar5-syr.ipcc.ch/topic_futurechanges.php>
https://ar5-syr.ipcc.ch › topic_futurechanges <https://ar5-syr.ipcc.ch/topic_futurechanges.php>
Topic 2 assesses projections of future climate change and the resulting risks and ... population growth, lifestyle and behavioural changes, associated changes in ...

What the new report on climate change expects from you - CNN <https://www.cnn.com/2018/10/08/world/ipcc-climate-change-consumer-actions-intl/index.html>
https://www.cnn.com › world › ipcc-climate-change-consumer-actions-intl <https://www.cnn.com/2018/10/08/world/ipcc-climate-change-consumer-actions-intl/index.html>
Oct 8, 2018 - A stark new report from the global scientific authority on climate ... But to do that, the UN's Intergovernmental Panel on Climate Change (IPCC) says, would ... change their lifestyle and consumption patterns to more sustainable ...

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