Working Paper: NBER ID: w29136
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. 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; Asset Pricing; Regulatory Risk; Physical Risk
JEL Codes: G12; G14; G32; H43; Q54; Q56
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Perception of asset pricing inadequacy (G19) | Belief that asset prices underestimate climate risks (G19) |
| Regulatory risk perceived as top climate-related risk for investors over next five years (G18) | Change in perceived risk type based on time horizon (D81) |
| Pressure from institutional investors (G23) | Climate risk mitigation efforts (Q54) |