Research

Working Papers

1. Flooded House or Underwater Mortgage? The Macrofinancial Implications of Climate Risk and Adaptation (Job Market Paper)

Tinbergen Institute Discussion Paper TI 2023-014/IV, (available on SSRN). Recently revised!

Finalist, Young Economist Prize, European Central Bank (2024),

Best Student Paper Award, CEPR European Conference on Household Finance (2023),

Best Single-Authored Paper Award, European Sustainable Finance PhD Workshop (2023).

Abstract: I study the implications of climate change and adaptation on household wealth. Households and firms are exposed to extreme weather events, which damage housing and physical capital, respectively. This has redistributive implications. Climate-related damages reduce the productivity of low-income workers disproportionately, increasing wage inequality. Meanwhile, capital becomes scarcer, raising the costs of borrowing. Credit-constrained households have weaker incentives to adapt to climate change as they prioritize present housing consumption. Their failure to effectively reduce vulnerability leaves them more exposed to climatic impacts, exacerbating wealth inequality and reducing welfare of future generations. The private adaptation gap widens as habitat shrinks, which increases the importance of housing in the consumption bundle and raises house prices in the long run. I quantitatively assess the evolution of the economy by conducting a long-run simulation for Florida's coastal area under various climate change scenarios.

Conferences: ECB Forum on Central Banking 2024 in Sintra (Young Economist Competition), 13th MoFiR Workshop on Banking (short presentation), 1st CEPR-ESSEC-Luxembourgh Conference on Sustainable Financial Intermediation (short presentation), NY Fed & NYU Fed Summer Climate Finance Conference (poster session), CEPR European Conference on Household Finance 2023,  9th IWH-Fin-Fire Workshop on Challenges to Financial Stability, 1st Norges Bank Research Workshop: Woman in Central Banking, 8th HEC Paris Finance PhD Workshop, IPWSD 2023 at Columbia University in the City of New York, 1st European Sustainable Finance PhD Workshop, AEA-ASSA Annual Conference 2025 (poster session),  2nd CEPR Paris Symposium (poster session), Conference of the French Finance Association (PhD workshop), 12th Portuguese Finance Network Conference, Nederlandse Economendag 2022.

Seminars: Imperial College Business School (Formal PhD Seminar),  Massachusetts Institute of Technology  (Sustainable Urbanization Lab, virtual),  De Nederlandsche Bank (Research Division, Economic Policy Division), Seminars on Environmental Economics and Management of Sustainability, University van Amsterdam (Finance Department, Macro and International Economics Department).

Media coverage: VoxTalks Economics 

2. Funding the Fittest? Pricing Climate Transition Risk in the Corporate Bond Market 

with M.A. Boermans & M.J.G. Bun.  

DNB Working Paper No. 797 (available on SSRN). Recently revised!

Abstract: We study whether climate transition risk is priced in corporate bond markets and if investors value companies’ green innovation efforts. Using confidential bond-level holdings data and global firm-level data on carbon emissions and green innovation, we find a positive transition risk premium. This premium is smaller for emission-intensive firms that engage in green innovation, suggesting that investors value companies’ efforts to mitigate climate change. We show that European investors, in particular institutional investors, have a higher demand for bonds from emission-intensive firms that engage in green innovation and thus influence yield spreads related to climate transition risk.

Conferences:  7th Annual GRASFI Conference, International Conference in Finance, Accounting and Banking 2024*, RCEA International Conference in Economics, Econometrics, and Finance 2024*, IAAE 2024 Annual Conference*, 29th International Panel Data Conference*, Nederlandse Economendag 2024.

Seminars: ESCB  Research Cluster Climate Change*,  Imperial College Business School  (Informal PhD Seminar), Robeco Asset Management,  De Nederlandsche Bank (Research Division),  University of Utrecht (School of Economics)*, University van Amsterdam (Finance Department).

Policy notes:  De Nederlandsche Bank  ·  SUERF   ·  E-Axes Forum .

Media coverage: Bloomberg. 

3. Political Economy of Climate Change Adaptation

with E.C. Perotti & F. Van der Ploeg. 

CEPR Discussion Paper DP18959, CESifo Working Paper No. 10961, Tinbergen Institute Discussion Paper TI 2024-013/IV,  (available on SSRN). Revised: May, 2024. 

Abstract: We study the evolution of voter support for public adaptation when political preferences are shaped by rising climate risk and economic inequality. Political support for tax-funded intervention to preserve habitable land evolves over time when households differ in age, income and beliefs. Support for public adaptation is initially low, rising as climate risk increases. We show that the political equilibrium experiences a tipping point in response to habitat loss if beliefs are not too dispersed, leading to a shift towards a more active adaptation policy. A steady rise in inequality may induce a second tipping point, but the policy impact depends on the balance between the gap in income and beliefs. Overall, public intervention is undermined by a "tragedy of the horizon" effect as cohorts internalize only partially its long-term benefits for future generations. This prevents public adaptation from converging to the social optimum even when political support is highest. 

Conferences:  EJPE-CEPR Political Economy Conference 2024, 2nd CEPR Paris Symposium, SURED Conference on Sustainable Resource Use and Economic Dynamics  2024, 1st Dutch Environmental and Resource Economics Day.

Seminars: Seminars on Environmental Economics and Management of Sustainability.

Policy notes: VoxEU.

4. Home Improvements, Wealth Inequality and the Energy-Efficiency Paradox

with M.Droës.

Tinbergen Institute Discussion Paper TI 2024-026/IV,  (available on SSRN).

Abstract: We explore the rate at which households go green and its effects on the distribution of wealth. Using unique Dutch data, we find that lower-income households are less likely to improve energy-efficiency. At the same time, higher-income households often sort in more energy-efficient homes. Energy savings amount to 17% of median net wealth, with sorting explaining 65% of this effect. Policies encouraging lower-income households to live in energy-efficient homes reduce wealth inequality but miss 83% of potential CO2 benefits, as higher-income households are more brown. Our analysis highlights a policy trade-off between reducing energy expenditures and effectively reducing CO2 emissions. 

Presentations: AREUEA-ASSA Annual Conference 2025, AREUEA International Conference 2024, 30th ERES Annual Conference*,  Royal Dutch Economic Association (KVS) New Paper Session 2024.

Seminars: Dutch Ministry of Economic Affairs and Climate Policy (EZK), Dutch Ministry of the Interior and Kingdom Relations (BZK)*, De Nederlandsche Bank (Economic Policy Division), University van Amsterdam (Finance Department).