Bio

Hossein is a Senior Economist of the Climate Analysis Team in the Financial Stability Department. He contributes to the Bank’s research on investigating the macroeconomic implications of climate change for the financial sector. His research interests include environmental economics, public economics, growth and development, and international trade. Specific topics include optimal policy design in the presence of externalities, distributional effects of environmental regulations, directed technological change in natural resource sectors, and the growth effects of intellectual property rights.

Prior to joining the Bank of Canada, Hossein worked as an Economist at the Smart Prosperity Institute (SPI) and the Canadian Energy Research Institute (CERI). Hossein holds a PhD in Economics from the University of Calgary, where he also worked as a lecturer during his studies.

Staff discussion papers

Climate-Related Flood Risk to Residential Lending Portfolios in Canada

Staff Discussion Paper 2023-33 Craig Johnston, Geneviève Vallée, Hossein Hosseini, Brett Lindsay, Miguel Molico, Marie-Christine Tremblay, Aidan Witts
We assess the potential financial risks of current and projected flooding caused by extreme weather events in Canada. We focus on the residential real estate secured lending (RESL) portfolios of Canadian financial institutions (FIs) because RESL portfolios are an important component of FIs’ balance sheets and because the assets used to secure such loans are immobile and susceptible to climate-related extreme weather events.
Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Climate change, Credit risk management, Econometric and statistical methods, Financial institutions, Financial stability JEL Code(s): C, C8, C81, G, G2, G21, Q, Q5, Q54

Transition Scenarios for Analyzing Climate-Related Financial Risk

Staff Discussion Paper 2022-1 Y.-H. Henry Chen, Erik Ens, Olivier Gervais, Hossein Hosseini, Craig Johnston, Serdar Kabaca, Miguel Molico, Sergey Paltsev, Alex Proulx, Argyn Toktamyssov
Climate transition scenarios clarify climate-related risks to our economy and financial system. This paper summarizes key results of Canada-relevant scenarios developed in a pilot project on climate risk by the Bank of Canada and the Office of the Superintendent of Financial Institutions.
Content Type(s): Staff research, Staff discussion papers Topic(s): Climate change, Economic models, Financial stability, International topics JEL Code(s): C, C6, C68, D, D5, D58, E, E5, E50, O, O4, O44, P, P1, P18, Q, Q5, Q54

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Staff working papers

An Investigation into the Effects of Border Carbon Adjustments on the Canadian Economy

Staff Working Paper 2023-27 Y.-H. Henry Chen, Hossein Hosseini, Craig Johnston, Sergey Paltsev, Marie-Christine Tremblay
We examine the economic implications of border carbon adjustments (BCAs) for Canada. We find that, BCAs, in the form of import tariffs, reduce Canada’s carbon leakage and improve its competitiveness when Canada is part of a broad coalition of BCA-implementing countries. Welfare also improves when tariff revenues are transferred to households.
Content Type(s): Staff research, Staff working papers Topic(s): Climate change, International topics, Trade integration JEL Code(s): C, C6, C68, F, F1, H, H2, Q, Q3, Q37, Q5

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Technical reports

Assessing Climate-Related Financial Risk: Guide to Implementation of Methods

Technical Report No. 120 Hossein Hosseini, Craig Johnston, Craig Logan, Miguel Molico, Xiangjin Shen, Marie-Christine Tremblay
A pilot project on climate transition scenarios by the Bank of Canada and the Office of the Superintendent of Financial Institutions assessed climate-related credit and market risks. This report describes the project’s methodologies and provides guidance on implementing them.
Content Type(s): Staff research, Technical reports Topic(s): Climate change, Credit and credit aggregates, Econometric and statistical methods, Financial stability JEL Code(s): C, C5, C53, C8, C83, G, G1, G3, G32

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Bank publications

Financial System Hub articles

January 15, 2024

Flood risk and residential lending

Craig Johnston, Geneviève Vallée, Hossein Hosseini, Miguel Molico, Marie-Christine Tremblay, Aidan Witts
We present key findings of a recent study that evaluates the credit risk that flooding poses to the residential lending activities of Canadian banks and credit unions. Results show that such risk currently appears modest but could become larger with climate change.
Content Type(s): Publications, Financial System Hub articles Topic(s): Central bank research, Climate change, Credit risk management, Econometric and statistical methods, Financial institutions, Financial stability JEL Code(s): C, C8, C81, G, G2, G21, Q, Q5, Q54

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