Current Research
How Climate Policy and Strategic Behavior Can Ensure Financial Stability
Program: VV-MVP-24-0395
Principal investigator: Elham Kamal
Investigators on behalf of FSEV UK: Tomáš Domonkos, Miroslava Jánošová, Veronika Miťková, Vladimír Mlynarovič, Peter Knížat
Duration: 2025 – 2028
Abstract: This project aims to understand the transition risks posed by climate policies, particularly the impact of carbon taxes on different economic sectors, the financial vulnerability of firms, and the banking sector through three complementary approaches: econometric modeling, computable general equilibrium (CGE) models, and game theory. Building on state-of-the-art research, the project will strengthen the theoretical foundation of climate-related financial risk analysis and provide empirical evidence relevant for policymakers and practitioners. The econometric analysis will estimate sectoral and firm-level responses to changes in energy prices and carbon taxation, while the CGE framework will evaluate macroeconomic and sectoral adjustments under alternative climate policy scenarios. In addition, game-theoretic modeling will examine the strategic interactions among governments, firms, and financial institutions in the transition toward a low-carbon economy. The project seeks to identify sectors and firms most exposed to transition risks, assess the implications for financial stability, and propose policy recommendations that support both decarbonization and economic resilience.
Conferences:
Presented at EENR Conference-2026 (April 16 and 17)-Orleans University in France, Firm-Level Elasticity of Fuel Demand and Energy Transition in Slovakia
Presented at 54th EBES Conference Paris (8-10 January 2026), Analysis on firm-level price elasticity of energy demand in Slovakia
Presented at 53rd-EBES-Conference Madrid (16-18 October 2025), Energy Demand and Transition Challenges in Slovakia
Working papers:
An Empirical Analysis of Energy Demand Elasticity in Slovakia
From Carbon Pricing to Financial Stability: A Quantitative Assessment of Climate Policy Impacts on Banking and Industry in Slovakia
Program: VEGA 1/0523/26
Principal investigator: Elham Kamal
Investigators on behalf of FSEV UK: Tomáš Domonkos, Veronika Miťková
Duration: 2026 – 2028
This project investigates how carbon policies affect industrial sectors and firms’ financial vulnerability in Slovakia. Using econometric analysis, the study quantitatively assesses the transmission of climate policy shocks from the real economy to the financial sector. The project aims to provide both theoretical and empirical evidence on climate-related transition risks and contribute to the development of effective climate and financial policies that support decarbonization while maintaining economic and financial stability.