Pricing of climate risks in financial markets: a summary of the literature

Egemen Eren, Floortje Merten, Niek Verhoeven

2022 | Academic | Climate, Risk & Performance

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Summary

This paper summarises the academic literature on the financial market pricing of physical and transition risks related to climate change. While studies find that these risks are starting to be priced, concerns are growing that current prices do not fully reflect the risks.