Economic growth depends critically on access to reliable energy. However in much of the world, access to energy remains low and supply is often unreliable. At the same time, the world’s energy choices are leading to levels of pollution that are substantially shortening people’s lives and causing climate change. The energy and growth challenge requires identifying solutions to these problems of access to inexpensive and reliable energy, while limiting environmental damage and guarding against disruptive climate change. In this Friedman Forum talk, Michael Greenstone explores key energy trends and outlines both the market and technology forces at play to meet this challenge.
Insights / Research Brief•Jun 28, 2021
Central Banking Challenges Posed by Uncertain Climate Change and Natural Disasters
Lars Peter Hansen
In recent years, some central banks have added a new responsibility to their list of tasks: ameliorate the effects of climate change. This could mean monitoring the short- and long-term exposure of financial institutions to climate change, or it could mean actively directing regulated financial institutions to invest in certain industries. In either case, central banks will have to determine how best to anticipate the likely effects of climate change many years into the future.
Topics: Energy & Environment
Finding•Jun 24, 2021
Dissecting Green Returns
Lubos Pastor, Robert F. Stambaugh, Lucian A. Taylor
Regarding green assets over the past decade, this research shows that green assets’ high recent returns are unexpected, reflecting news about environmental concerns rather than high expected returns; further, this work reveals that the green factor’s recent outperformance vanishes after removing the effects of climate-concern shocks.
Topics: Energy & Environment, Financial Markets