Only climate policy risk prices in US equity markets
Investors demand greater returns from stocks exposed to the US political debate on climate change, says research published by the National Bank of Denmark. Professor George Skiadopoulos, has analysed climate change risks, including physical and transition risks and short-run and long-run risks, through an LDA textual analysis method. He said: "We find that the only risk related to US climate policy is priced, with investor requiring a greater expected return for stocks being more exposed to this risk factor".
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