Finance and Economics Discussion Series (FEDS)
July 2022
Climate Change and Financial Policy: A Literature Review
Abstract:
This article reviews the rapidly proliferating economic literature on climate change and financial policy. We find: (1) enduring challenges in estimating the statistical properties of a changed climate; (2) emerging evidence of financial markets pricing in climate-related risks; and (3) a range of significant institutional distortions preventing such pricing from being complete. Finally, we argue that geographic regions may be an especially fruitful unit of analysis for understanding the financial impact of climate change.
Accessible materials (.zip)
Keywords: Climate change, Climate-finance, Climate-related risk
DOI: https://doi.org/10.17016/FEDS.2022.048
PDF: Full Paper
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