Shocks to Transition Risk

We propose and implement a method to identify shocks to #transitionrisk addressing key challenges regarding its definition and #measurement. Our shocks are instances where significant new information about the economic relevance of climate change increases the valuation of #greenfirms over #brownfirms. To illustrate our method, we identify shocks to transition risk in the #us. These shocks have important aggregate effects, also inducing #financialinstability. They are […]

Measuring Transition Risk in Investment Funds

“We find that sustainable funds are less exposed to transition risk and perform better than the overall fund sector in the low-carbon transition, validating their choice as green investments.” Lire