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Giglio, Stefano
Kelly, Bryan
Stroebel, Johannes
Year of Publication: 
Series/Report no.: 
CESifo Working Paper No. 8772
We review the literature studying interactions between climate change and financial markets. We first discuss various approaches to incorporating climate risk in macro-finance 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.
climate change
climate risk
physical risk
transition risk
Document Type: 
Working Paper

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