Humboldt-Universität zu Berlin - Resource Economics

Junior Research Group PECan

The political economy of climate policy and finance

Start: October 2022
End: September 2027

PECan explores the complex social-ecological interactions between climate, political and financial systems. Here, the focus is both on understanding the climate-finance system and on investigating politico-economic barriers that presumably prevent a sustainable transformation.

In doing so, the project addresses the following research questions:

  • What are the physical and political transition risks to the climate-finance system?
  • Which politico-economic barriers prevent a sustainable transformation of the climate-finance system and how can these be resolved?
  • How can retail investors participate in financial opportunities and what are the potentials of such bottom-up participation?

To answer these questions, PECan combines scenario analysis, agent-based models, climate stress testing, theoretical models, and empirical research. In addition, PECan involves central banks, non-governmental organizations (NGOs), think tanks and private actors. The results will be incorporated into implemented stress tests, into innovative sustainable financial products, and into recommendations for policy makers.

Researcher: Marc-Philipp Bohnet, Philip Karol Fliegel, Anne Schönauer, Maria Zioga


Project Partner: Potsdam-Institut für Klimafolgenforschung


Lead Overall Project: Dr. Achim Hagen


Funding: Bundesministerium für Bildung und Forschung (BMBF)