Reports/Studies/Briefs

‘Decarbonising is easy: Beyond market neutrality in the ECB’s corporate QE’, New Economics Foundation, 2020 (with D. Gabor, M. Nikolaidi, A. Pawloff and F. van Lerven)

Christine Lagarde, the President of the European Central Bank (ECB), has recently promised to explore every avenue for greening the ECB’s operations, including its quantitative easing (QE) programme. Yet the current corporate QE programme remains biased towards carbon-intensive sectors: these sectors are over-represented in the ECB purchases, when compared to their contribution to the euro area employment and economic activity. An important consequence of the carbon bias is that it may lower the cost of borrowing (an implicit subsidy) and encourage more debt issuance by the most carbon intensive firms relative to low-carbon firms. By favouring access to finance for highly polluting companies, this carbon bias is an important barrier to the decarbonisation of the euro area economies. We argue that the ECB should abandon its market neutrality approach, the key driver of this carbon bias, and adopt alternative low-carbon strategies. We suggest two such strategies in which carbon-intensive bonds are replaced with more climate-friendly bonds. These strategies would significantly reduce the climate footprint of the ECB corporate QE and would make companies’ access to finance more aligned with the targets of the Paris Agreement.


‘Decarbonising the Bank of England’s QE: perfectly sensible?’, New Economics Foundation, 2020 (with D. Gabor, M. Nikolaidi and F. van Lerven)

According to the new governor of the Bank of England, Andrew Bailey, aligning the Bank’s corporate bond purchase scheme with the government’s climate goals is a ‘perfectly sensible thing to do’ and should be made a ‘priority’. Yet in its current framework, the pandemic corporate bond purchase programme is heavily biased towards carbon-intensive sectors –and thus at odds with the government’s environmental objectives. This carbon bias means the programme may lower the cost of borrowing (an implicit subsidy) and encourage more debt issuance by the most carbon-intensive firms relative to low-carbon firms. To help support the governor’s efforts, this briefing sets out two alternative purchase strategies –the ‘Lower-carbon pandemic QE’ scenario and the ‘Low-carbon pandemic QE’ scenario − that would help decarbonise the Bank’s corporate bond purchases (boosting green investment in the process) and ensure that the Bank’s policy interventions are consistent with its rhetoric.


Labour report

Finance and Climate Change: A Progressive Green Finance Strategy for the UK, Report of the independent panel commissioned by Shadow Chancellor of the Exchequer John McDonnell MP, 2019 (with D. Gabor, M. Nikolaidi, P. Rice, F. van Lerven, R. Kerslake, A. Pettifor and M. Jacobs).

The rapid decarbonisation of the UK economy requires a wide range of climate policies, from fiscal interventions to a green industrial strategy and environmental regulations that can restrict carbon-intensive consumption. These policies need to be accompanied by a rapid transformation of the UK financial system. This report provides a list of recommendations for making the UK financial system climate-aligned. The recommendations cover monetary policy, banking regulation and market-based finance and form the basis for the development of a progressive green finance strategy for the UK.    


Brief-FEPSCan green QE reduce global warming? Foundation for European Progressive Studies (FEPS), 2018 (with M. Nikolaidi and G. Galanis).

The idea of a green QE (quantitative easing) programme has gained a lot of traction over the last years. It has been argued that by implementing such a programme central banks could contribute to the fight against climate change. Our recent research shows that a green QE programme that involves the purchase of green corporate bonds can indeed reduce global warming. The programme will be more effective if green investment responds strongly to changes in the interest rates. Yet, green QE cannot by itself prevent severe climate change: even with optimistic assumptions about the role of interest rates, the path of global atmospheric temperature is not very likely to change substantially by such a programme. Many other types of environmental policies and strategies are necessary to keep global warming close to 2oC.


A new ecological macroeconomic model: analysing the interactions between the ecosystem, the financial system and the macroeconomy New Economics Foundation, 2015 (with G. Galanis and M. Nikolaidi).

Our economy, environment and financial system cannot be viewed in isolation: each interacts with the other. However, the current models that inform policy making lack a clear understanding of the links between these systems. This is a significant gap. It’s time to develop a new modelling framework that can analyse these links in an integrated way.

 


Study 26The Contribution of the Social Protection System to Economic Growth, Study 26, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2013 (with C. Papatheodorou; in Greek).

 

 

 


Study 23Macroeconomic Policy, Functional Income Distribution and Inequality: A Theoretical Analysis, Study 23, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2012 (with C. Papatheodorou; in Greek).

 

 

 


Brief 5‘How can the Greek trade balance improve?, Policy Brief 5, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2012 (with M. Nikolaidi; in Greek).

 

 

 


Brief 2‘The macroeconomic assumptions of the austerity programme in Greece: are they realistic?’, Policy Brief 2, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2011 (with M. Nikolaidi; in Greek).

 

 

 


Brief 1‘The paradox of social policy in Greece: why the rise in social protection expenditures did not reduce poverty’, Policy Brief 1, Observatory of Economic and Social Developments,  Labour Institute, Greek General Confederation of Labour, 2011 (with C. Papatheodorou; in Greek).

 

 

 


Report 4The Sovereign Debt Crisis in Greece: Causes and Prospects, Report 4, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2011 (with G. Argitis and M. Nikolaidi; in Greek).

 

 

 


Study 11Public Programme Budgeting: An Institution Conducive to Economic and Social Development or to Fiscal Austerity? Study 11, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2011 (with G. Argitis and A. Marsellou; in Greek).

 

 

 


HSPADimensions of Labourers’ Poverty and Deprivation in Greece and the Attica, Hellenic Social Policy Association, Athens, 2010 (with C. Papatheodorou; in Greek).

 

 

 


Report 2Structure and Trends in Economic Inequality and Poverty in Greece and the EU, 1995-2008, Report 2, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2010 (with C. Papatheodorou; in Greek).

 

 

 


Study 3Macroeconomic Environment, Inequality and Poverty: An Empirical Investigation for the Impact of Economic Growth and Social Protection in Greece and the EU, Study 3, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2010 (with C. Papatheodorou; in Greek).

 

 

 


Study 2Economic Growth, Inequality and Poverty: Theoretical and Empirical Approaches, Study 2, Observatory of Economics and Social Developments, Labour Institute, Greek General Confederation of Labour, 2010 (with C. Papatheodorou, E. Papadopoulou and G. Sakellaridis; in Greek).

 

 

 


Report 1Economic Inequality and Poverty in Greece: Comparative Analysis and Intertemporal Trends, Report 1, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2008 (with C. Papatheodorou, S. Danchev and Α. Marsellou; in Greek).

 

 

 


Study 1Poverty in Greece: Similarities and Differences under Alternative Methodological Approaches, Study 1, Observatory of Economic and Social Developments, Labour Institute, Greek General Confederation of Labour, 2008 (with A. Theofilakou, C. Mavrodimitrakis and P. Tsakloglou; in Greek).