Mirabelle Muûls aims to develop a cost-benefit analysis of climate policies and sectoral regulations based on firm-level micro-econometric research projects.

She will first develop a useful data Infrastructure for the measurement of firm-level emissions exploiting micro-datasets available within the Bank. These datasets should extend the bounds for economic analysis in various directions. They should allow to compare the distribution of carbon dioxide emissions per job across industries and over time.

Specific questions that will be analysed relate to the cost-passthrough of carbon pricing, the impact on productivity and mark-ups, how these effects are spread through the production network and the international trade pattern and how this is related with the discussion on the carbon border adjustment mechanism.

Finally, she will also study the impact of the low-carbon transition on the banking sector and how these effects can be analysed in the context of climate stress tests measuring the banks’ vulnerability to the impacts of climate change. Specific channels that will be investigated are how extreme weather events can lead to large losses affecting insurance companies, and how climate policy and shifts in demand will impact negatively industries that are very energy intensive or based on fossil fuels.