Climate change has a significant impact on the global economy and financial markets, making climate risk and uncertainty central to asset pricing decisions. These risks include potential economic losses due to extreme weather events or gradual changes and can impact business redundancy, infrastructure stability, and approval channels. We review the main theoretical models that incorporate climate risk in asset pricing and the empirical methods to assess the existence of a climate risk premium.

Climate change and asset pricing: a focused review of literature

Tiziana Ciano
Conceptualization
;
2024-01-01

Abstract

Climate change has a significant impact on the global economy and financial markets, making climate risk and uncertainty central to asset pricing decisions. These risks include potential economic losses due to extreme weather events or gradual changes and can impact business redundancy, infrastructure stability, and approval channels. We review the main theoretical models that incorporate climate risk in asset pricing and the empirical methods to assess the existence of a climate risk premium.
2024
Climate Risk, Uncertainty, Environmental Sustainability, Asset Pricing.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.14087/11681
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