price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

In RBC models, “disaster risk shocks” reproduce countercyclical risk premia but generate an increase in consumption … procyclical consumption and wages, while preserving countercyclical risk premia, in response to disaster risk shocks. The …

the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon … abatement. However, their effect on the carbon beta and risk premium of abatement can be decreasing (when innovation spillovers … when the actions of the regulator fall short. These instruments must also consider the investment risk and the sequence of …

the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon … abatement. However, their effect on the carbon beta and risk premium of abatement can be decreasing (when innovation spillovers … when the actions of the regulator fall short. These instruments must also consider the investment risk and the sequence of …

The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission … financial performances, especially of listed companies. There are two ways these companies can disclose their transition risk … exposure and are not alternatives. One is the explicit declaration of exposure to transition risk in the legally binding …

We propose a proxy for a climate risk factor, the pollutive-minus-clean (PMC) portfolio, which captures differences in … obtain estimates of asset-level climate risk exposure: 'carbon beta'. Validation of carbon betas confirms that variation in … climate risk exposures aligns with our prior expectations. Our measure has desirable properties regarding availability …

that lead to these assets becoming stranded. Our result suggest that climate change implies a positive and increasing risk … risk. Transition risks lower substantially the participation of carbon intensive assets in the market portfolio, which …

increasing risk premium. We also show that, with the observed trends in climate change, macroeconomic risk works as a hedge … against catastrophic climate change, such that the aggregate equity premium may remain unaltered. The transition risk of …

According to our survey about climate risk perceptions, institutional investors believe climate risks have financial … of the investors, especially the long-term, larger, and ESG-oriented ones, consider risk management and engagement …

This paper documents that when a southern California home gets designated to a wildfire risk zone, its price drops by … 11% relative to homes just outside the designation boundary. Whereas the risk designation is discontinuous, the … underlying risk is continuous — suggesting the price effect is due to greater risk salience rather than greater risk. Moreover …