This paper presents a simple dynamic investment strategy that allows long-term passive investors to hedge climate risk without sacrificing financial returns. We illustrate how tracking error can be almost eliminated even for a low carbon index that has 50% less carbon footprint than its...

This study relates owner and property characteristics to non-industrial private forest (NIPF) owners’ attitudes to financial risk-taking in forestry decisions. Using a two-period mean-variance setting, the harvesting decisions of NIPF owners are examined with the aim of measuring their...