Europe’s Environmental Taxonomy

Question A:

The EU's taxonomy for sustainable activities - a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate - is an effective way to steer greener investment and the energy transition by firms and financial institutions.


Details on the taxonomy are here:
https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en

Responses weighted by each expert's confidence

Question B:

Use of the EU taxonomy for sustainable activities is likely to stifle important innovations, including in green technology.

Responses weighted by each expert's confidence

Question C:

On balance, use of the taxonomy in EU directives and regulation is likely to be net beneficial to European citizens.

Responses weighted by each expert's confidence

Question A Participant Responses

Participant University Vote Confidence Bio/Vote History
Allen
Franklin Allen
Imperial College London
Uncertain
5
Bio/Vote History
The problem is that there is a very wide range of views about what is green and what is sustainable. An important example is nuclear fission. Germany does not regard it as green while France does.
Antras
Pol Antras
Harvard Did Not Answer Bio/Vote History
Blanchard
Olivier Blanchard
Peterson Institute
No Opinion
Bio/Vote History
Bloom
Nicholas Bloom
Stanford
Uncertain
1
Bio/Vote History
Blundell
Richard William Blundell
University College London Did Not Answer Bio/Vote History
Botticini
Maristella Botticini
Bocconi
Agree
7
Bio/Vote History
Bénassy-Quéré
Agnès Bénassy-Quéré
Paris School of Economics
Agree
7
Bio/Vote History
The taxonomy is useful but only covers part of the problem. And binary approach not always appropriate.
Carletti
Elena Carletti
Bocconi
Disagree
7
Bio/Vote History
Danthine
Jean-Pierre Danthine
Paris School of Economics
Agree
7
Bio/Vote History
The idea behind the taxonomy is far from perfect but its existence will help the industry focusing on the environmental challenge confronting us.
De Grauwe
Paul De Grauwe
LSE
Uncertain
6
Bio/Vote History
Eeckhout
Jan Eeckhout
UPF Barcelona
Agree
8
Bio/Vote History
Better than nothing but carbon pricing will do this much more effectivly
Fehr
Ernst Fehr
Universität Zurich
Uncertain
1
Bio/Vote History
Freixas
Xavier Freixas
Barcelona GSE Did Not Answer Bio/Vote History
Fuchs-Schündeln
Nicola Fuchs-Schündeln
Goethe-Universität Frankfurt
Uncertain
3
Bio/Vote History
Galí
Jordi Galí
Barcelona GSE Did Not Answer Bio/Vote History
Garicano
Luis Garicano
LSE
Uncertain
10
Bio/Vote History
The EU taxonomy is a bit like the old Yahoo search engine: a set of categories and subcategories. It freezes a hugely changing reality at a moment in time. It will steer investment ,but I fear it will be too rigid and arbitrage ridden.
Gorodnichenko
Yuriy Gorodnichenko
Berkeley
Uncertain
1
Bio/Vote History
Griffith
Rachel Griffith
University of Manchester Did Not Answer Bio/Vote History
Guerrieri
Veronica Guerrieri
Chicago Booth Did Not Answer Bio/Vote History
Guiso
Luigi Guiso
Einaudi Institute for Economics and Finance
Uncertain
5
Bio/Vote History
Guriev
Sergei Guriev
Sciences Po
Agree
8
Bio/Vote History
Honohan
Patrick Honohan
Trinity College Dublin
Uncertain
1
Bio/Vote History
May help call out some greenwashing, but seems a fairly weak instrument at present.
Javorcik
Beata Javorcik
University of Oxford
Agree
6
Bio/Vote History
Krahnen
Jan Pieter Krahnen
Goethe University Frankfurt Did Not Answer Bio/Vote History
Kőszegi
Botond Kőszegi
Central European University Did Not Answer Bio/Vote History
La Ferrara
Eliana La Ferrara
Harvard Kennedy Did Not Answer Bio/Vote History
Leuz
Christian Leuz
Chicago Booth
Agree
5
Bio/Vote History
If by "effective" we mean whether the taxonomy will steer investments, then the answer is clearly yes, because it is tied to several EU regulations/directives. It is less clear that it is a good way to steer investments or the energy transition.
Mayer
Thierry Mayer
Sciences-Po Did Not Answer Bio/Vote History
Meghir
Costas Meghir
Yale
Uncertain
8
Bio/Vote History
Pagano
Marco Pagano
Università di Napoli Federico II
Uncertain
1
Bio/Vote History
Pastor
Lubos Pastor
Chicago Booth
Agree
9
Bio/Vote History
Persson
Torsten Persson
Stockholm University Did Not Answer Bio/Vote History
Pissarides
Christopher Pissarides
London School of Economics and Political Science Did Not Answer Bio/Vote History
Portes
Richard Portes
London Business School
Disagree
5
Bio/Vote History
No consensus on interpretation and implementation
Prendergast
Canice Prendergast
Chicago Booth
Agree
6
Bio/Vote History
Propper
Carol Propper
Imperial College London
Agree
4
Bio/Vote History
Rasul
Imran Rasul
University College London Did Not Answer Bio/Vote History
Reichlin
Lucrezia Reichlin
London Business School
Disagree
8
Bio/Vote History
Reis
Ricardo Reis
London School of Economics
No Opinion
Bio/Vote History
Repullo
Rafael Repullo
CEMFI
Uncertain
4
Bio/Vote History
Rey
Hélène Rey
London Business School
Disagree
8
Bio/Vote History
uniform measurement of GHG emissions together with as global as possible carbon price and appropriate public investment would be effective
Schoar
Antoinette Schoar
MIT
Uncertain
7
Bio/Vote History
Storesletten
Kjetil Storesletten
University of Minnesota
Uncertain
2
Bio/Vote History
Sturm
Daniel Sturm
London School of Economics
Uncertain
3
Bio/Vote History
Van Reenen
John Van Reenen
LSE
Uncertain
6
Bio/Vote History
Van der Ploeg
Rick Van der Ploeg
Oxford
Uncertain
7
Bio/Vote History
I fear that nuclear energy and natural gas will be counted as green and sustainable.
Vickers
John Vickers
Oxford
Uncertain
4
Bio/Vote History
Voth
Hans-Joachim Voth
University of Zurich
Strongly Disagree
8
Bio/Vote History
Whelan
Karl Whelan
University College Dublin Did Not Answer Bio/Vote History
Wyplosz
Charles Wyplosz
The Graduate Institute Geneva
Disagree
5
Bio/Vote History
It's a politico-bureaucratic exercise.

Question B Participant Responses

Participant University Vote Confidence Bio/Vote History
Allen
Franklin Allen
Imperial College London
Agree
5
Bio/Vote History
This is an important issue. While the taxonomy has a role to play, it is important that innovation is not stifled.
Antras
Pol Antras
Harvard Did Not Answer Bio/Vote History
Blanchard
Olivier Blanchard
Peterson Institute
No Opinion
Bio/Vote History
Bloom
Nicholas Bloom
Stanford
Uncertain
1
Bio/Vote History
Blundell
Richard William Blundell
University College London Did Not Answer Bio/Vote History
Botticini
Maristella Botticini
Bocconi
Uncertain
7
Bio/Vote History
Bénassy-Quéré
Agnès Bénassy-Quéré
Paris School of Economics
Uncertain
7
Bio/Vote History
Indirect impact through funding costs. Carbon pricing much more efficient.
Carletti
Elena Carletti
Bocconi
Uncertain
5
Bio/Vote History
Danthine
Jean-Pierre Danthine
Paris School of Economics
Disagree
7
Bio/Vote History
The worry is legitimate because the taxonomy is too detailed and not sufficiently principle based but I believe the biggest negatives can be avoided
De Grauwe
Paul De Grauwe
LSE
Disagree
5
Bio/Vote History
Eeckhout
Jan Eeckhout
UPF Barcelona
Uncertain
7
Bio/Vote History
Fehr
Ernst Fehr
Universität Zurich
Uncertain
1
Bio/Vote History
Freixas
Xavier Freixas
Barcelona GSE Did Not Answer Bio/Vote History
Fuchs-Schündeln
Nicola Fuchs-Schündeln
Goethe-Universität Frankfurt
Uncertain
3
Bio/Vote History
Galí
Jordi Galí
Barcelona GSE Did Not Answer Bio/Vote History
Garicano
Luis Garicano
LSE
Agree
7
Bio/Vote History
Again, it has to do with the fact that what may appear to the legislator brown at some point may be able to become green in ways that the legislation did not envisage.
Gorodnichenko
Yuriy Gorodnichenko
Berkeley
Uncertain
1
Bio/Vote History
Griffith
Rachel Griffith
University of Manchester Did Not Answer Bio/Vote History
Guerrieri
Veronica Guerrieri
Chicago Booth Did Not Answer Bio/Vote History
Guiso
Luigi Guiso
Einaudi Institute for Economics and Finance
Uncertain
5
Bio/Vote History
not informed enough
Guriev
Sergei Guriev
Sciences Po
Disagree
8
Bio/Vote History
Honohan
Patrick Honohan
Trinity College Dublin
Disagree
1
Bio/Vote History
Too light an obligation to weigh heavily against significant innovations
Javorcik
Beata Javorcik
University of Oxford
No Opinion
Bio/Vote History
Krahnen
Jan Pieter Krahnen
Goethe University Frankfurt Did Not Answer Bio/Vote History
Kőszegi
Botond Kőszegi
Central European University Did Not Answer Bio/Vote History
La Ferrara
Eliana La Ferrara
Harvard Kennedy Did Not Answer Bio/Vote History
Leuz
Christian Leuz
Chicago Booth
Uncertain
5
Bio/Vote History
Definitely a concern. It could stifle innovation by being inflexible and driven by political compromises, rather than technological advances. It is updated only every three years (and we have not yet seen how much it changes with an update).
Mayer
Thierry Mayer
Sciences-Po Did Not Answer Bio/Vote History
Meghir
Costas Meghir
Yale
Uncertain
8
Bio/Vote History
Pagano
Marco Pagano
Università di Napoli Federico II
Uncertain
1
Bio/Vote History
Pastor
Lubos Pastor
Chicago Booth
Uncertain
9
Bio/Vote History
Persson
Torsten Persson
Stockholm University Did Not Answer Bio/Vote History
Pissarides
Christopher Pissarides
London School of Economics and Political Science Did Not Answer Bio/Vote History
Portes
Richard Portes
London Business School
Strongly Disagree
5
Bio/Vote History
Prendergast
Canice Prendergast
Chicago Booth
Uncertain
8
Bio/Vote History
Propper
Carol Propper
Imperial College London
Uncertain
4
Bio/Vote History
Rasul
Imran Rasul
University College London Did Not Answer Bio/Vote History
Reichlin
Lucrezia Reichlin
London Business School
Agree
8
Bio/Vote History
Reis
Ricardo Reis
London School of Economics
No Opinion
Bio/Vote History
Repullo
Rafael Repullo
CEMFI
Uncertain
4
Bio/Vote History
Rey
Hélène Rey
London Business School
Uncertain
6
Bio/Vote History
Schoar
Antoinette Schoar
MIT
Uncertain
7
Bio/Vote History
Storesletten
Kjetil Storesletten
University of Minnesota
Uncertain
1
Bio/Vote History
Sturm
Daniel Sturm
London School of Economics
Disagree
3
Bio/Vote History
Van Reenen
John Van Reenen
LSE
Disagree
8
Bio/Vote History
Van der Ploeg
Rick Van der Ploeg
Oxford
Uncertain
7
Bio/Vote History
If natural gas and nuclear are viewed as green, financial and other resources for R&D will be detracted from real green R&D investments.
Vickers
John Vickers
Oxford
Disagree
4
Bio/Vote History
Voth
Hans-Joachim Voth
University of Zurich
Agree
7
Bio/Vote History
Whelan
Karl Whelan
University College Dublin Did Not Answer Bio/Vote History
Wyplosz
Charles Wyplosz
The Graduate Institute Geneva
Uncertain
2
Bio/Vote History

Question C Participant Responses

Participant University Vote Confidence Bio/Vote History
Allen
Franklin Allen
Imperial College London
Agree
5
Bio/Vote History
It certainly has a role to play and helps focus attention on the issues.
Antras
Pol Antras
Harvard Did Not Answer Bio/Vote History
Blanchard
Olivier Blanchard
Peterson Institute
No Opinion
Bio/Vote History
Bloom
Nicholas Bloom
Stanford
Uncertain
1
Bio/Vote History
Blundell
Richard William Blundell
University College London Did Not Answer Bio/Vote History
Botticini
Maristella Botticini
Bocconi
Agree
7
Bio/Vote History
Bénassy-Quéré
Agnès Bénassy-Quéré
Paris School of Economics
No Opinion
Bio/Vote History
Global warming is... global.
Carletti
Elena Carletti
Bocconi
Uncertain
5
Bio/Vote History
Danthine
Jean-Pierre Danthine
Paris School of Economics
Agree
7
Bio/Vote History
De Grauwe
Paul De Grauwe
LSE
Uncertain
6
Bio/Vote History
Eeckhout
Jan Eeckhout
UPF Barcelona
Agree
8
Bio/Vote History
Fehr
Ernst Fehr
Universität Zurich
Uncertain
1
Bio/Vote History
Freixas
Xavier Freixas
Barcelona GSE Did Not Answer Bio/Vote History
Fuchs-Schündeln
Nicola Fuchs-Schündeln
Goethe-Universität Frankfurt
Uncertain
3
Bio/Vote History
Galí
Jordi Galí
Barcelona GSE Did Not Answer Bio/Vote History
Garicano
Luis Garicano
LSE
Disagree
8
Bio/Vote History
I think the EU needs to reconsider this approach. We have a very good alternative: a price system, the ETS together with CBAM, that allows us to tax Carbon. Private investment is much more likely to be efficiently incentivized by having to pay a price for CO2.
Gorodnichenko
Yuriy Gorodnichenko
Berkeley
Uncertain
1
Bio/Vote History
Griffith
Rachel Griffith
University of Manchester Did Not Answer Bio/Vote History
Guerrieri
Veronica Guerrieri
Chicago Booth Did Not Answer Bio/Vote History
Guiso
Luigi Guiso
Einaudi Institute for Economics and Finance
Uncertain
5
Bio/Vote History
Guriev
Sergei Guriev
Sciences Po
Agree
8
Bio/Vote History
Honohan
Patrick Honohan
Trinity College Dublin
Agree
1
Bio/Vote History
But small.
Javorcik
Beata Javorcik
University of Oxford
Agree
6
Bio/Vote History
Krahnen
Jan Pieter Krahnen
Goethe University Frankfurt Did Not Answer Bio/Vote History
Kőszegi
Botond Kőszegi
Central European University Did Not Answer Bio/Vote History
La Ferrara
Eliana La Ferrara
Harvard Kennedy Did Not Answer Bio/Vote History
Leuz
Christian Leuz
Chicago Booth
Uncertain
8
Bio/Vote History
It is too early and not much evidence yet. On one hand, the taxonomy limits greenwashing and guides investments in the direction of sustainability. On the other hand, much hinges on design and flexibility of the taxonomy. A price mechanism (think carbon tax) should be considered.
Mayer
Thierry Mayer
Sciences-Po Did Not Answer Bio/Vote History
Meghir
Costas Meghir
Yale
Uncertain
8
Bio/Vote History
Pagano
Marco Pagano
Università di Napoli Federico II
Uncertain
1
Bio/Vote History
Pastor
Lubos Pastor
Chicago Booth
Agree
9
Bio/Vote History
Persson
Torsten Persson
Stockholm University Did Not Answer Bio/Vote History
Pissarides
Christopher Pissarides
London School of Economics and Political Science Did Not Answer Bio/Vote History
Portes
Richard Portes
London Business School
Disagree
5
Bio/Vote History
Prendergast
Canice Prendergast
Chicago Booth
Agree
7
Bio/Vote History
Propper
Carol Propper
Imperial College London
Uncertain
4
Bio/Vote History
Rasul
Imran Rasul
University College London Did Not Answer Bio/Vote History
Reichlin
Lucrezia Reichlin
London Business School
Disagree
8
Bio/Vote History
Reis
Ricardo Reis
London School of Economics
No Opinion
Bio/Vote History
Repullo
Rafael Repullo
CEMFI
Uncertain
4
Bio/Vote History
Rey
Hélène Rey
London Business School
Uncertain
6
Bio/Vote History
Schoar
Antoinette Schoar
MIT
Disagree
7
Bio/Vote History
If it comes at the expense of scientific research into sustainable energy , it is net negative.
Storesletten
Kjetil Storesletten
University of Minnesota
Uncertain
2
Bio/Vote History
Sturm
Daniel Sturm
London School of Economics
Uncertain
3
Bio/Vote History
Van Reenen
John Van Reenen
LSE
Agree
6
Bio/Vote History
Van der Ploeg
Rick Van der Ploeg
Oxford
Agree
7
Bio/Vote History
Better something than nothing.
Vickers
John Vickers
Oxford
Uncertain
3
Bio/Vote History
Voth
Hans-Joachim Voth
University of Zurich
Strongly Disagree
8
Bio/Vote History
Whelan
Karl Whelan
University College Dublin Did Not Answer Bio/Vote History
Wyplosz
Charles Wyplosz
The Graduate Institute Geneva
Uncertain
3
Bio/Vote History