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Climate Finance

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  • Ströbel, Johannes
  • Giglio, Stefano
  • Kelly, Bryan

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

  • Ströbel, Johannes & Giglio, Stefano & Kelly, Bryan, 2020. "Climate Finance," CEPR Discussion Papers 15557, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15557
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    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

    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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