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Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

Please note that all times are shown in the time zone of the conference. The current conference time is: 10th Sept 2026, 07:06:37pm CEST (Norway)

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Daily Overview

Session

Growth, technology, and the green transition
Location: Lab 1
Session Chair: Larissa de Lima Almeida, Leiden University

Presentation 2

Taking the green pill: Macro-financial transition risks and policy challenges in the MATRIX model

Davide Bazzana^1,2, Emanuele Ciola^1,2, Enrico Turco^1,3, Massimiliano Rizzati^1,2, Sergio Vergalli^1,2

1: Fondazione Eni Enrico Mattei, Italy; 2: Università degli Studi di Brescia, Italy; 3: Università Cattolica del Sacro Cuore di Milano, Italy

Discussant: IOANNA GRAMMATIKOPOULOU (European Commission-Joint Research Centre)

This paper evaluates the macroeconomic and financial risks of the energy transition using an extended MATRIX model, a multi-agent, multi-sector integrated assessment framework for the Euro Area. The model features endogenous, directed technical change in the energy sector and a decentralized electricity market based on merit-order rule. Energy firms switch technologies based on relative profitability, capturing feedback loops between R&D, productivity gains, and competitiveness, which may lead to either brown lock-in or green energy transition. We compare conventional policies -- brown tax (BT), unconditional green subsidy (GS), and conditional green subsidy (CGS) linked to R&D -- with alternative policy mixes, such as coordinated monetary policy, green finance and green industrial policy. Results show that while conventional policies modestly increase transition likelihood, they entail GDP losses due to production and financial constraints. These can be mitigated with green industrial policy and green finance, which alleviate sectoral bottlenecks and foster a more effective transition.