Original scientific paper
https://doi.org/10.46672/zsl.10.11.3
CLIMATE ECONOMICS, GREEN TRANSITION AND CENTRAL BANKING
Biljana Balog
orcid.org/0009-0004-9138-9564
Luka Brkić
; Libertas International University
Abstract
Climate change presents a major challenge for public policy. While most economists agree on reducing greenhouse gas emissions, opinions differ on the pace. The “Stern vs. Nordhaus” debate reflects this, as Stern calls for immediate, aggressive reductions, whereas Nordhaus advocates gradual measures. Acemoğlu offers a middle ground, integrating endogenous technical change into climate modelling. Central banks, tasked with maintaining price stability and financial supervision, now face climate-related pressures. As all sectors move toward sustainability, central banks are increasingly recognizing their role in supporting the green transition. This paper explores how monetary authorities can address climate risks, presenting a synthesis of key economic theories and models, including Stern, Nordhaus, and Acemoğlu. It further analyses the evolving mandates of central banks in the face of climate imperatives. The paper is based on an analytical synthesis of relevant
domestic and international literature, as well as insights from existing empirical research addressing the economic dimensions of climate change and the role of central banks in the green transition.
Keywords
economics of climate change, discount rate, climate modelling, green transition, central bank
Hrčak ID:
343913
URI
Publication date:
31.12.2025.
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