We explore the design of climate stress tests to assess and manage macroprudential risks
from climate change in the financial sector. We review the climate stress scenarios currently …

Transitioning to a low‐carbon economy will entail sweeping transformations of energy and
economic systems. A growing research body has raised concerns about the effect of such …

In this address, I discuss differences across investor and manager motivations for
considering sustainable finance—value versus values motivations—and how these …

Do climate-oriented regulatory policies affect the flow of credit towards polluting firms? We
match loan-level data to firm-level greenhouse gas emissions to assess the impact of the …

We investigate whether and how the environmental consciousness (greenness for short) of
firms and banks is reflected in the pricing of bank credit. Using a large international sample …

We estimate the effect of carbon pricing policy on bank credit to greenhouse-gas-emitting
firms. Our analyses exploit the geographic restrictions inherent in California's cap-and-trade …

Climate-related risks have increased in recent decades, both in terms of the frequency of
extreme weather events (physical risk) and the implementation of climate-change mitigation …

We review the burgeoning sustainable finance literature, emphasizing the value implications
of ESG (environmental, social, and governance) and CSR (corporate social responsibility) …

We exploit regional variations in exposure to heat stress to study if physical climate risk is
priced in municipal and corporate bonds as well as in equity markets. We find consistent …

We develop a new measure of impact elasticity, defined as a firm's change in environmental
impact due to a change in its cost of capital. We show empirically that a reduction in …