Working Paper: CEPR ID: DP16622
Authors: Johannes Stroebel; Jeffrey Wurgler
Abstract: We survey 861 finance academics, professionals, and public sector regulators and policy economists about climate finance topics. They identify regulatory risk as the top climate risk to businesses and investors over the next five years, but they view physical risks as the top risk over the next 30 years. By an overwhelming margin, respondents believe that asset prices underestimate climate risks rather than overestimate them. We also tabulate opinions about the correlation between growth and climate change; social discount rates appropriate for projects that mitigate the effects of climate change; most influential forces for reducing climate risks; and, most important research topics.
Keywords: climate finance; environment; ESG; SRI; social discounting
JEL Codes: G12; G14; H43; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| perceived market inefficiencies (G14) | belief that asset markets underestimate climate risks (G19) |
| regulatory frameworks (G38) | perception of regulatory risk as top climate risk for businesses and investors (G38) |
| institutional investor pressure (G23) | corporate responses to climate risk (G38) |
| climate impacts (Q54) | economic conditions (E66) |