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Finance and Climate Change Risk: A Review of the Literature

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DOI: 10.23977/pree.2024.050112 | Downloads: 12 | Views: 240

Author(s)

Yan Li 1

Affiliation(s)

1 Guangxi University, Nanning, Guangxi, China

Corresponding Author

Yan Li

ABSTRACT

Climate change poses a significant threat to financial stability and has the potential to trigger global systemic financial risks. Therefore, the relationship between climate change and finance has become a focal point for scholars, financial institutions, and policymakers. The impact of climate change risks on the decisions made by enterprises and financial institutions underscores the need for strengthened research efforts in policy, technology, markets, and other relevant areas to mitigate these risks and uphold the stability of the financial system. This paper undertakes a review of the literature on climate change risk published in leading finance journals, examining diverse perspectives such as public belief, corporate finance, asset pricing, theoretical models, and policy supervision. By identifying key research directions in this field, the paper aims to provide valuable insights to support countries in promoting the transition to a low-carbon economy and maintaining financial system stability in the face of climate change challenges.

KEYWORDS

Climate Risk, Climate Finance, Public Belief, Asset Pricing

CITE THIS PAPER

Yan Li, Finance and Climate Change Risk: A Review of the Literature. Population, Resources & Environmental Economics (2024) Vol. 5: 83-91. DOI: http://dx.doi.org/10.23977/pree.2024.050112.

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