Only climate policy risk priced in US equity markets – research

US political debate is only “wake-up call” for investors, who seem to disregard physical risks


Investors demand greater returns from stocks exposed to the US political debate on climate change, says research published by the National Bank of Denmark.

However, they seem to disregard global developments associated with climate change, especially physical risks.

Authors Renato Faccini, George Skiadopoulos and Rastin Matin analyse climate change risks, including physical and transition risks and short-run and long-run risks, through an LDA textual analysis method.

They identify four topics

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