Working Paper: Are Climate Change Risks Priced in the US Stock Market?
Working Paper - February 2021 - no. 169
We construct proxies of physical and transition risks by conducting textual analysis of climate news. Using U.S. stock prices, we find that only the short-term risks elicited by the political debate are priced. Longer running risks elicited by news on international summits, global warming and natural disasters are not priced.