How Have Stocks Responded to Changes in Climate Policy?

Have climate risks been reflected in equity prices? We find that the timeframe used in evaluating the impact of events on market prices is critical.

In previous research, we explained that there are two types of risk drivers we can use to detect a relationship between events and stock price: ”event risk” refers to risks that are more immediately priced in by investors while ”erosion risks” tend to play out over longer time periods. In this blog post, we explore how equity markets have reacted to climate transition risks.

You can now read the full whitepaper at the link below