SCENARIO ANALYSIS / SECRAET
2020-01-17The objective of this program is to develop a standard methodology for integrating data from prospective scenarios under carbon constraints for the analysis of the risks associated with the financing of energy sector projects. Based on the development of a scenario taxonomy, the ambition is to succeed in formalizing an open-source analysis model, robust, accessible and adapted to various economic and geographic contexts, capable of facilitating the mobilization of financial industry stakeholders towards low carbon assets. This involves, for example, building investment risk matrices on low-carbon ‘generic technologies’ (solar, wind, etc.) and using them to quantify the value of financial assets (stocks / bonds) taking into account their exposure to transition risks and associated uncertainties.
Research outputs:
- Climate-economic scenarios and models: a reading guide for sustainable finance (Jean-Charles Hourcade, Frédéric Ghersi, Romain Grandjean, Julien Lefèvre, P. T. and Stéphane Voisin), Institut Louis Bachelier, Opinions & Débats collection, 2021.
- Green Investment and Asset Stranding Under Transition Scenario Uncertainty (M. Flora and P. T.), minor revision for Energy Economics.
- Corporate Debt Value under Transition Scenario Uncertainty (T. Le Guenedal and P. T.), minor revision for Mathematical Finance.
- Energy transition under scenario uncertainty: a mean-field game approach (R. Dumitrescu, M. Leutscher and P. T.), submitted.