Abstract
Climate risks are often considered by environmentally aware investors. But
research suggests share prices in carbon-intensive sectors may not reflect
potential liabilities for damages from extreme weather events.
Based on the 2017 hurricane season, we estimated the top seven carbon-emitting publicly-listed companies, under a hypothetical climate liability regime, might see annual damages from North Atlantic hurricane seasons. This would amount to the order of 1-2% of their market capitalisations (or share prices) each year.
These potential financial implications are substantial. But future changes are projected to be even more significant.
research suggests share prices in carbon-intensive sectors may not reflect
potential liabilities for damages from extreme weather events.
Based on the 2017 hurricane season, we estimated the top seven carbon-emitting publicly-listed companies, under a hypothetical climate liability regime, might see annual damages from North Atlantic hurricane seasons. This would amount to the order of 1-2% of their market capitalisations (or share prices) each year.
These potential financial implications are substantial. But future changes are projected to be even more significant.
| Original language | English |
|---|---|
| Pages | 18 |
| Number of pages | 1 |
| No. | 596 |
| Specialist publication | Citywire New Model Adviser |
| Publication status | Published - 11 Jun 2018 |
| Externally published | Yes |
Bibliographical note
Q65ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- General Environmental Science
