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Climate Finance

Author

Listed:
  • Stefano Giglio
  • Bryan Kelly
  • Johannes Stroebel
Abstract
We review the literature studying interactions between climate change and financial markets. We first discuss various approaches to incorporating climate risk in macro-finance models. We then review the empirical literature that explores the pricing of climate risks across a large number of asset classes including real estate, equities, and fixed income securities. In this context, we also discuss how investors can use these assets to construct portfolios that hedge against climate risk. We conclude by proposing several promising directions for future research in climate finance.

Suggested Citation

  • Stefano Giglio & Bryan Kelly & Johannes Stroebel, 2020. "Climate Finance," CESifo Working Paper Series 8772, CESifo.
    • Handle: RePEc:ces:ceswps:_8772
    as

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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp8772.pdf
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    References listed on IDEAS

    as
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Climate Finance
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2021-05-31 11:38:10

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    More about this item

    Keywords

    climate change; climate risk; physical risk; transition risk; ESG;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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