Working Paper

Climate Change and Financial Policy: A Literature Review

Abstract: This article reviews the rapidly proliferating economic literature on climate change and financial policy. We find: (1) enduring challenges in estimating the statistical properties of a changed climate; (2) emerging evidence of financial markets pricing in climate-related risks; and (3) a range of significant institutional distortions preventing such pricing from being complete. Finally, we argue that geographic regions may be an especially fruitful unit of analysis for understanding the financial impact of climate change.

Keywords: Climate change; Climate-finance; Climate-related risk;

JEL Classification: G20; Q54; G10;

https://doi.org/10.17016/FEDS.2022.048

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2022-07-29

Number: 2022-048