We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices through textual analysis of newspapers. Second, we present a new approach to compute factor mimicking portfolios to build climate risk hedge portfolios. The new mimicking...

We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices through textual analysis of newspapers. Second, we present a new approach to compute factor mimicking portfolios to build climate risk hedge portfolios. The new mimicking...

The way in which climate policy and climate risks are currently accounted for in financial and real investment decisions is inadequate. The paper demonstrates weaknesses in methods presently used and proposes an alternative that aims to bridge the duration gap between climate policy modeling and...

Die wirtschaftspolitischen Implikationen der Klimaanpassung sind entscheidend für die Ausgestaltung einer eigenständigen Klimaanpassungspolitik und geben gleichzeitig wichtige Anreize zu politischem Handeln. Dieses Papier diskutiert daher eine mögliche wirtschaftspolitische Ausrichtung der...

Klimaanpassungspolitik wird in Deutschland auf verschiedenen politischen Ebenen betrieben. Dieses Papier untersucht auf Grundlage der ökonomischen Theorie der Anpassungspolitik Defizite dieser Politikansätze. Diese liegen in erster Linie in den folgenden Bereichen: unklare Abgrenzung von...

The purpose of this paper is to explore whether the 'Fit for 55' update of the European Union's CO₂ regulation is up to the task of fixing its past mistakes and putting Europe on course to reach net zero mobility by 2050, while also dealing with the new set of challenges that arises with the...

Global warming caused by accumulation of emissions of greenhouse gases (GHGs) is a public bad, addressing which requires collective action by all the countries of the world. Under the United Nations Convention on Climate Change (UNFCCC), most countries have negotiated the Kyoto Protocol for GHG...

The paper develops an explicit formula for the calculation of optimal carbon taxes in a dynamic integrated assessment framework. We attempt to generalize the Gosolov et al. (2014) theory by relaxing the restrictions with logarithmic preferences, Cobb-Douglas production and the full periodwise...

We develop an ecological open-economy SFC model that enables testing cross-area interactions among productive sectors, financial markets and the ecosystem. We show that the unequal technical progress across areas, coupled with rising ecological awareness, can force governments of less...

Technology transfer is one of the most contentious issues in international negotiations on climate change. Despite its recognition at international platforms such as the United Nations Framework Convention on Climate Change, G20, etc., the independent review of Climate Technology Centre and...