Is climate change a monetary phenomenon? Evidence from time series analysis

ABSTRACT

This study examined the role of monetary policy in addressing climate change in the East African Community using a time series approach. The empirical evidence shows that monetary policy through the credit and interest rate channel can help smooth the transition to low-carbon economies, but at the cost of financial uncertainty.

KEYWORD:

• Climate Change
• Monetary Policy
• Interest Channel
• Credit Risk
• VAR Model, East Africa

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.