Financial risks of climate change
May
04
05:00 PM - 06:00 PM
Livestream
Financial risks of climate change
What are the financial risks from a changing climate? The first part of this webcast provides a macroeconomic perspective by reviewing recent estimates of the macroeconomic effects of climate change around the world, including a discussion of the key climate impact mechanisms which are vs. are not yet covered in prevailing risk assessments. The second part offers a finance perspective by reviewing the growing evidence base for the capitalization of climatic risks into asset prices, including a discussion of some of the limits to such capitalization and the risks they pose to future asset price stability.
Prof. Lint Barrage's research investigates how environmental processes and policies affect macroeconomic outcomes and human welfare. She brings a multi-methodological approach to this agenda, combining tools from different fields in order to leverage new data, empirics, and theoretical advancements.
Live from the UZH Studios, we reviewed recent economic research on the topic and took questions from the audience via Mentimeter. The host was UBS Foundation Professor David Hémous (University of Zurich).
This was a public event with free access via livestream on our website in association with the Centre for Economic Policy Research (CEPR).
What are the financial risks from a changing climate? The first part of this webcast provides a macroeconomic perspective by reviewing recent estimates of the macroeconomic effects of climate change around the world, including a discussion of the key climate impact mechanisms which are vs. are not yet covered in prevailing risk assessments. The second part offers a finance perspective by reviewing the growing evidence base for the capitalization of climatic risks into asset prices, including a discussion of some of the limits to such capitalization and the risks they pose to future asset price stability.
Prof. Lint Barrage's research investigates how environmental processes and policies affect macroeconomic outcomes and human welfare. She brings a multi-methodological approach to this agenda, combining tools from different fields in order to leverage new data, empirics, and theoretical advancements.
Lint Barrage is Associate Professor and Chair of Energy and Climate Economics at ETH Zürich
Speakers
Lint Barrage is an Associate Professor and the Chair of Energy and Climate Economics at ETH Zurich. Her work leverages data, theory, and integrated natural systems-economic modeling approaches to quantify the impacts of environmental risks and policies on the macroeconomy. Recent examples of her research topics include the fiscal costs of climate change, the capitalization of climate risks into asset prices, and the implications of natural gas price fluctuations for energy technology and innovation. Barrage currently serves as an author on the 5th U.S. National Climate Assessment and edits the Journal of Political Economy - Microeconomics. She is a frequent speaker at public entities at both national and international levels and serves as a research affiliate at the Centre for Economic Policy Research and the CESifo Research Network. Barrage received her BA in Economics and Environmental Studies from the University of Chicago and her PhD in Economics from Yale University.
UBS Foundation Associate Professor of Economics of Innovation and Entrepreneurship
David Hémous received his PhD from Harvard University in 2012. He is a macroeconomist working on economic growth, climate change and inequality. His work highlights that innovation responds to economic incentives and that public policies should be designed taking this dependence into account. In particular, he has shown in the context of climate change policy that innovations in the car industry respond to gas prices and that global and regional climate policies should support clean innovation to efficiently reduce CO2 emissions. His work on technological change and income distribution shows that higher labor costs lead to more automation, and that the recent increase in labor income inequality and in the capital share can be explained by a secular increase in automation. He has also shown that innovation affects top income shares. He was awarded an ERC Starting Grant on 'Automation and Income Distribution – a Quantitative Assessment' and he received the 2022 'European Award for Researchers in Environmental Economics under the Age of Forty'.
Lint Barrage is an Associate Professor and the Chair of Energy and Climate Economics at ETH Zurich. Her work leverages data, theory, and integrated natural systems-economic modeling approaches to quantify the impacts of environmental risks and policies on the macroeconomy. Recent examples of her research topics include the fiscal costs of climate change, the capitalization of climate risks into asset prices, and the implications of natural gas price fluctuations for energy technology and innovation. Barrage currently serves as an author on the 5th U.S. National Climate Assessment and edits the Journal of Political Economy - Microeconomics. She is a frequent speaker at public entities at both national and international levels and serves as a research affiliate at the Centre for Economic Policy Research and the CESifo Research Network. Barrage received her BA in Economics and Environmental Studies from the University of Chicago and her PhD in Economics from Yale University.
UBS Foundation Associate Professor of Economics of Innovation and Entrepreneurship
David Hémous received his PhD from Harvard University in 2012. He is a macroeconomist working on economic growth, climate change and inequality. His work highlights that innovation responds to economic incentives and that public policies should be designed taking this dependence into account. In particular, he has shown in the context of climate change policy that innovations in the car industry respond to gas prices and that global and regional climate policies should support clean innovation to efficiently reduce CO2 emissions. His work on technological change and income distribution shows that higher labor costs lead to more automation, and that the recent increase in labor income inequality and in the capital share can be explained by a secular increase in automation. He has also shown that innovation affects top income shares. He was awarded an ERC Starting Grant on 'Automation and Income Distribution – a Quantitative Assessment' and he received the 2022 'European Award for Researchers in Environmental Economics under the Age of Forty'.