The Economics of Climate Change


1 CE Credit | 37-Page Paper

Dimensional takes a science-based approach to investing and studying issues of interest to our clients. In this paper, we provide an introduction to four topics related to climate change: the science behind climate change, the economic impact of climate change, potential policy responses, and implications for asset pricing and investment choices.

Learning Objectives

1. Review why greenhouse gases cause climate change and the concept of climate sensitivity.

2. Understand the issues involved in valuing the future costs of climate change and the future benefits of policy responses.

3. Understand the difference between physical risk and transitional risk.

4. Review the literature about how asset prices incorporate information about climate risk. 

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