IDEAS home Printed from https://ideas.repec.org/a/mnb/finrev/v22y2023i1p57-76.html

Measuring Climate Risks with Indirect Emissions

Author

Listed:
  • Orsolya Szendrey

    (University of Debrecen)

  • Mihaly Dombi

    (University of Debrecen)

Abstract

Climate change poses completely new challenges for the financial markets, and thus the consideration of green aspects is becoming explicitly required by regulators and investors. Most of the reports which influence the market in this way evaluate the climate or environmental impact of a product or process based on their alignment with a regulatory standard. However, the methods applied for measurement do not always provide a proper description of the relationship between the investments and the natural resources. Most analyses evaluate investments related to economic sectors based exclusively on direct emissions, while indirect impacts, which represent a substantial part of total emissions, are not taken into account. In the study, the methods and results which are currently applied are compared to calculations including indirect impacts as well.

Suggested Citation

  • Orsolya Szendrey & Mihaly Dombi, 2023. "Measuring Climate Risks with Indirect Emissions," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 22(1), pages 57-76.
    • Handle: RePEc:mnb:finrev:v:22:y:2023:i:1:p:57-76
    as

    Download full text from publisher

    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-1-st2-szendrey-dombi.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roncoroni, Alan & Battiston, Stefano & Escobar-Farfán, Luis O.L. & Martinez-Jaramillo, Serafin, 2021. "Climate risk and financial stability in the network of banks and investment funds," Journal of Financial Stability, Elsevier, vol. 54(C).
    2. Dikau, Simon & Volz, Ulrich, 2021. "Central bank mandates, sustainability objectives and the promotion of green finance," Ecological Economics, Elsevier, vol. 184(C).
    3. Arnold Tukker & Arjan de Koning & Richard Wood & Troy Hawkins & Stephan Lutter & Jose Acosta & Jose M. Rueda Cantuche & Maaike Bouwmeester & Jan Oosterhaven & Thomas Drosdowski & Jeroen Kuenen, 2013. "Exiopol - Development And Illustrative Analyses Of A Detailed Global Mr Ee Sut/Iot," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 50-70, March.
    4. Hansen, Lars Peter, 2022. "Central banking challenges posed by uncertain climate change and natural disasters," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 1-15.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yahya, Farzan & Lee, Chien-Chiang & Chen, Pei-Fen, 2025. "Is central bank resilience vulnerable to climate risks? The role of exchange rate stability and green policies," Journal of Asian Economics, Elsevier, vol. 99(C).
    2. Yi, Eunkyung & Kim, Bongchul & Oztarsu, Mehmet Fatih & Khaustova, Yevheniia & Yatsenko, Hanna, 2025. "Optimisation of international financial institutions: A comparative analysis of Ukraine and South Korea’s roles in enhancing global economic stability," World Development Perspectives, Elsevier, vol. 38(C).
    3. Wang, Chao & Hu, Mengyuan & Lu, Jiayi & Liu, Xiaoxing, 2025. "Carbon exposure of credit assets and banking systemic risk caused by climate transition," Research in International Business and Finance, Elsevier, vol. 77(PB).
    4. Marcinkowska, Monika & Brzeszczyński, Janusz & Charteris, Ailie & Gajdka, Jerzy & Obojska, Lidia & Szczygielski, Jan Jakub, 2025. "Sustainability, energy finance and the role of central banks: A review of current insights and future research directions," Energy Economics, Elsevier, vol. 144(C).
    5. Baer, Moritz & Campiglio, Emanuele & Deyris, Jérôme, 2021. "It takes two to dance: Institutional dynamics and climate-related financial policies," Ecological Economics, Elsevier, vol. 190(C).
    6. Feldkircher, Martin & Teliha, Viktoriya, 2024. "Speeches in the green: The political discourse of green central banking," Energy Economics, Elsevier, vol. 135(C).
    7. repec:ecr:col037:81906 is not listed on IDEAS
    8. Baranyai, Eszter & Kolozsi, Pál Péter & Neszveda, Gábor & Lehmann, Kristóf & Banai, Ádám, 2025. "The impact of the green direction in central banking on the general public's trust: Evidence from Hungary," International Review of Financial Analysis, Elsevier, vol. 97(C).
    9. Radu Șimandan & Cristian Valeriu Păun & Bogdan Glăvan, 2023. "Post-Pandemic Greenness? How Central Banks Use Narratives to Become Green," Sustainability, MDPI, vol. 15(2), pages 1-28, January.
    10. Monasterolo,Irene & Mandel,Antoine & Battiston,Stefano & Mazzocchetti,Andrea & Oppermann,Klaus & Coony,Jonathan D'Entremont & Stretton,Stephen John & Stewart,Fiona Elizabeth & Dunz,Nepomuk Max Ferdina, 2022. "The Role of Green Financial Sector Initiatives in the Low-Carbon Transition : A Theoryof Change," Policy Research Working Paper Series 10181, The World Bank.
    11. Eickmeier, Sandra & Petersen, Luba, 2024. "The ECB's climate activities and public trust," Discussion Papers 43/2024, Deutsche Bundesbank.
    12. Chen, Yiyao & Jiang, Fuwei & Zhang, Huajing, 2026. "Central bank green communication and pollution premium: Evidence from China," Emerging Markets Review, Elsevier, vol. 70(C).
    13. D’Orazio, Paola, 2025. "Climate risks and financial stability: Evidence on the effectiveness of climate-related financial policies," International Review of Financial Analysis, Elsevier, vol. 105(C).
    14. Pacelli, Vincenzo & Foglia, Matteo & Mariano, Dayana, 2025. "The link between climate and systemic risk: A bibliometric and systematic literature review," Research in International Business and Finance, Elsevier, vol. 79(C).
    15. Ginn, William & Saadaoui, Jamel & Salachas, Evangelos, 2025. "Can Green Transition Only Thrive with Price Stability?," MPRA Paper 126542, University Library of Munich, Germany.
    16. Joaquín Bernal-Ramírez & Jair Ojeda-Joya & Camila Agudelo-Rivera & Felipe Clavijo-Ramírez & Carolina Durana-Ángel & Clark Granger-Castaño & Daniel Osorio-Rodríguez & Daniel Parra-Amado & José Pulido &, 2022. "Impacto macroeconómico del cambio climático en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 102, pages 1-62, July.
    17. Rodrigo Mesa-Arango & Badri Narayanan & Satish V. Ukkusuri, 2019. "The Impact of International Crises on Maritime Transportation Based Global Value Chains," Networks and Spatial Economics, Springer, vol. 19(2), pages 381-408, June.
    18. Djedjiga Kachenoura & David Chetboun & Marine Lagarde & Laurent Mélère & Damien Serra, 2024. "Les politiques financières et réglementaires face aux enjeux climatiques," Post-Print hal-05421553, HAL.
    19. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    20. Kucukvar, Murat & Haider, Muhammad Ali & Onat, Nuri Cihat, 2017. "Exploring the material footprints of national electricity production scenarios until 2050: The case for Turkey and UK," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 251-263.
    21. Jacopo Zotti & Andrea Bigano, 2019. "Write circular economy, read economy’s circularity. How to avoid going in circles," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 629-652, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:finrev:v:22:y:2023:i:1:p:57-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morvay Endre The email address of this maintainer does not seem to be valid anymore. Please ask Morvay Endre to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.