InsightsApril 4, 2017

What Financial Markets Can Teach Us About Managing Climate Risks

Writing for the New York Times, Lab co-director Michael Greenstone explains President Trump appears to be putting the federal government on a path toward valuing climate damages at much lower than previously estimated — possibly less than $5 per metric ton of carbon. This administrative tweak runs counter to insight from financial markets that reveals investors are willing to accept a lower average return on insurance, precisely because it helps to manage risk.