Fernando Loaiza

Achieving net-zero emissions requires not only technological innovation but also the capacity to absorb and implement it effectively. This study investigates how absorptive capacity, defined as the interaction between tertiary education and R&D investment, amplifies the impact of innovation on carbon emissions. Using fixed effects and Difference-in-Differences models, the analysis shows that while R&D alone reduces emissions, its effect is significantly stronger in countries with higher levels of education. Mechanism analyses reveal that absorptive capacity enhances environmental outcomes by strengthening policy enforcement, accelerating the diffusion of green technologies, and improving energy efficiency. These findings highlight the importance of aligning education and innovation policies to unlock the full decarbonization potential of climate technologies.

This paper examines how the composition of education financing shapes economic growth and income inequality. An overlapping-generations model with heterogeneous agents and non-homothetic education preferences shows that lower-income households demand more education relative to income but face tighter financing constraints, making the public–private mix central for distributional outcomes. Shifting toward public provision reduces inequality and promotes growth via human capital accumulation. System GMM estimates for OECD countries support these predictions: a one-unit increase in the public–private spending gap reduces the Gini coefficient by 6.4\% and raises GDP per capita by 2.5\%. These effects operate through higher tertiary attainment, which compresses income dispersion and enhances productivity. The results highlight that the structure, not just the level, of education financing shapes macroeconomic and distributional outcomes.

This research explores the impact of education on individuals' involvement with financial assets such as savings, annuities/IRAs, and stocks in the United States. Utilizing panel data and various identification strategies, the findings indicate that education is associated with greater investment in these assets, particularly among those with college and postgraduate degrees. The paper examines how higher incomes resulting from better education, improved financial behaviors, and an increased willingness to take risks contribute to these outcomes.

This study investigates the causal relationship between education and wealth accumulation. Utilizing three distinct identification strategies, the research analyzes a panel dataset from the United States, encompassing two generations. The empirical findings indicate that higher educational attainment, particularly at the college and postgraduate levels, leads to a significant increase in lifetime wealth. Subsequently, the paper develops a life-cycle heterogeneous agents model to assess the impact of educational policies on wealth accumulation.

This study examines the impact of tertiary education on wealth in the U.S. by gender, race, and generation. The findings reveal that males and White individuals gain more wealth from higher education, while females and Non-White groups see less benefit or even negative impacts. Generational analysis shows diminishing returns for younger cohorts.

This paper examines whether tying CEO compensation to environmental performance reduces firms' greenhouse gas emissions. Using global firm-level data from 2015–2024, we exploit the staggered adoption of environmental bonus components and regulatory-driven variation, to estimate how emissions change after incentives are introduced. Across specifications, the estimated effects are small and statistically non-significant. To interpret this null result, we document that environmental components are typically minor relative to total compensation and rely largely on qualitative, non-verifiable criteria rather than quantified emissions targets. Consistent with weak contractibility and limited monitoring capacity, firms appear more likely to adjust disclosure and qualitative representations of performance than operational emissions. Our results suggest that ESG-linked compensation schemes, as currently designed, function more as symbolic commitments than as effective drivers of decarbonization, highlighting the need for clearer, quantitatively grounded, and verifiable metrics if pay is intended to align executives with climate goals.

Voluntary corporate climate targets are intended to reduce emissions, but their effects may depend on how those emissions are accounted for. Using CDP disclosures for 4,186 firms between 2016 and 2025 and a staggered difference-in-differences design, we find that science-based target approval lowers market-based Scope 2 emissions by about 27%, while Scope 1 and location-based Scope 2 remain unchanged. The renewable share of purchased electricity rises by 7.8 percentage points, with no change in electricity consumption or grid carbon intensity. The shift runs through contractual sourcing, with the largest response in unbundled energy attribute certificates, which are bought separately from electricity supply, without necessarily adding new generation. Market-based accounting can therefore register reductions without a corresponding change in physical emissions. Contractual sourcing can support decarbonization, but assessing progress toward corporate climate goals requires distinguishing it from changes in energy use and the electricity system.

Mandatory third-party assurance of corporate emissions is spreading, but it is unclear whether verification changes emissions themselves or only the figures firms report. We estimate the causal effect of third-party verification of corporate emissions using staggered adoption among CDP-reporting firms from 2018 to 2025. Verification produces two distinct effects on how firms report and how they operate. A reporting effect appears immediately in the extensive and intensive margins of Scope 3 value-chain categories, changing category coverage and reported emissions. A behavioral effect operates through Scope 1, as emissions fall gradually in the years after adoption, driven by a shift away from fuel consumption. Scope 2 emissions, both location-based and market-based, show no robust change. These findings suggest that third-party verification can improve emissions inventories, influence subsequent operational decisions and guide the design of mandatory assurance requirements for corporate climate reporting.

This paper develops an overlapping generations (OLG) model to assess the macroeconomic and social impacts of Europe's demographic transition. Two policy approaches are evaluated: preventive health measures aimed at reducing future long-term care (LTC) needs and expanding LTC insurance coverage. The model, calibrated to EU5 countries, explores the effects of these strategies on economic growth, inequality, and fiscal sustainability.