Since the Paris climate agreement…
- Renewable power accounted for 70% of net additions to power-generating capacity in 2017;
- Over 200 states, regions, and local authorities have committed to cut their greenhouse-gas emissions by at least 80% below 1990 levels by 2050;
- New York City has mandated the retrofitting of 14,500 of the city’s most polluting buildings. Shenzhen has become the first city in the world with a fully electric bus fleet;
- More than 700 companies with a total market capitalization of over $16 trillion have made far-reaching climate commitments;
The Climate Fight’s Next Turning Point
By: Patricia Espinoza, Anne Hidalgo
ASSESSING CLIMATE CHANGE RISKS
At the institutional level
Central banks play a critical role in this context: monetary policy operations affect financial market prices, which in turn influence capital allocation. Currently, both central banks’ asset purchase programs and collateral frameworks extensively rely on financial markets’ risk assessment. By doing so, central banks are likely to also underestimate climate risks. This consolidates the biases in financial markets and cements carbon lock-in.
Central banks should reflect climate risks in monetary policy operations
By: Pierre Monnin – CEP
At the individual level
Carleton and al. use subnational data from 41 countries and develop an empirical model to study the mortality-temperature relationship. One of their conclusions:
For example by 2100, we project that climate change will cause annual damages equivalent to approximately 3,700 additional deaths in the Mogadishu, Somalia impact region, but will also generate annual benefits equivalent to approximately 1,100 lives in the Oslo, Norway region. We find the extent of the heterogeneity surprising and note that it may be especially important when one considers that populations are likely to make judgments about climate change with utility functions that reflect risk aversion.
Valuing the Global Mortality Consequences of Climate Change Accounting for Adaptation Costs and Benefits
Authors: Tamma Carleton, , Michael Delgado, Michael Greenstone, Trevor Houser, Solomon Hsiang, Andrew Hultgren, Amir Jina, Robert Kopp, Kelly McCusker, Ishan Nath, James Rising, Ashwin Rode, Samuel Seo, Justin Simcock, Arvid Viaene, Jiacan Yuan, Alice Zhang
From: University of Chicago, Rhodium Group, University of California, Berkeley, Rutgers University, London School of Economics, Columbia University, NBER
