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Managing climate change risk: a responsibility for politicians not Central Banks

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  • Ozili, Peterson K

Abstract

This article discusses the need for climate change risk mitigation and why it is not the responsibility of Central Banks to mitigate climate change risk. The paper argues that the responsibility for managing climate change risk should lie with elected officials, other groups and institutions but not Central Banks. Elected officials, or politicians, should be held responsible to deal with the consequence of climate change events. Also, international organizations and everybody can take responsibility for climate change while the Central Bank can provide assistance - but Central Banks should not lead the climate policy making or mitigation agenda.

Suggested Citation

  • Ozili, Peterson K, 2021. "Managing climate change risk: a responsibility for politicians not Central Banks," MPRA Paper 113468, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:113468
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    File URL: https://mpra.ub.uni-muenchen.de/113468/1/MPRA_paper_113468.pdf
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    References listed on IDEAS

    as
    1. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    2. Marshall Burke & Kyle Emerick, 2016. "Adaptation to Climate Change: Evidence from US Agriculture," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 106-140, August.
    3. Andrew Dlugolecki, 2008. "Climate Change and the Insurance Sector," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 33(1), pages 71-90, January.
    4. Howard Kunreuther & Geoffrey Heal & Myles Allen & Ottmar Edenhofer & Christopher B. Field & Gary Yohe, 2013. "Risk management and climate change," Nature Climate Change, Nature, vol. 3(5), pages 447-450, May.
    5. Cynthia Rosenzweig & David Major & Kate Demong & Christina Stanton & Radley Horton & Melissa Stults, 2007. "Managing climate change risks in New York City’s water system: assessment and adaptation planning," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(8), pages 1391-1409, October.
    6. Batten,, Sandra & Sowerbutts, Rhiannon & Tanaka, Misa, 2016. "Let’s talk about the weather: the impact of climate change on central banks," Bank of England working papers 603, Bank of England.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Radu Șimandan & Cristian Păun, 2021. "The Costs and Trade-Offs of Green Central Banking: A Framework for Analysis," Energies, MDPI, vol. 14(16), pages 1-25, August.

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    More about this item

    Keywords

    Climate change; environment; Central Bank; government; atmosphere; financial stability; risk management; climate change risk; financial sector; responsibility; financial institutions.;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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