The effectiveness of climate change models in measuring financial risk
The proceedings of 3rd Business Doctoral and Emerging Scholars Conference
Edith Cowan University - School of Business and Law
School of Business and Law / Markets and Services Research Centre (MASRC)
The effectiveness of models which measure the financial and economic impacts of climate change is examined through a critical review of the literature. There is disparity found as to what constitutes the financial effects of climate change and also as to how climate change should be measured. Existing models are predominantly focused on specific financial impacts of climate change rather than the impacts on the economy as a whole. The study makes recommendations for additional research which includes an economy-wide model that measures the impacts of climate change on a country’s entire economic and financial system.