Climate Finance

Stefano Giglio, Bryan Kelly and Johannes Stroebel
Additional contact information
Bryan Kelly: School of Management, Yale University, New Haven, Connecticut 06520, USA

Annual Review of Financial Economics, 2021, vol. 13, issue 1, 15-36

Abstract: In this article, we review the literature studying interactions between climate change and financial markets. We first discuss various approaches to incorporating climate risk in macrofinance models. We then review the empirical literature that explores the pricing of climate risks across a large number of asset classes, including real estate, equities, and fixed income securities. In this context, we also discuss how investors can use these assets to construct portfolios that hedge against climate risk. We conclude by proposing several promising directions for future research in climate finance.

Keywords: climate change; climate risk; physical risk; transition risk; ESG; environmental, social, and corporate governance (search for similar items in EconPapers)
JEL-codes: G10 Q54 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1146/annurev-financial-102620-103311
Full text downloads are only available to subscribers. Visit the abstract page for more information.

Related works:
Working Paper: Climate Finance (2020)
Working Paper: Climate Finance (2020)
Working Paper: Climate Finance (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:anr:refeco:v:13:y:2021:p:15-36

Ordering information: This journal article can be ordered from
http://www.annualreviews.org/action/ecommerce

DOI: 10.1146/annurev-financial-102620-103311

Access Statistics for this article

More articles in Annual Review of Financial Economics from Annual Reviews Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA.
Bibliographic data for series maintained by http://www.annualreviews.org ().