Climate

Sustaining large-scale public goods requires individuals to make environmentally friendly decisions today to benefit future generations. Recent research suggests that second-order normative beliefs are more powerful predictors of behaviour than first-order personal beliefs. We explored the role that second-order normative beliefs — the belief that community members think that saving energy helps the environment — play in curbing energy use.

This article investigates the cost and feasibility of reducing U.S. greenhouse gas emissions by 80 percent from 2005 levels by 2050. The United States has stated in its Paris Conference of the Parties (COP) 21 submission that this is its aspiration. I suggest that this goal can be reached at a net cost in the range of $37 to $135 billion/year. I assume that the goal is to be reached by extensive use of solar photovoltaic and wind energy (66 percent of generating capacity), in which case the cost of energy storage will play a key role in the overall cost.

Top 15 Financial Times McKinsey Business Book of 2015

Buildings have a major impact on the environment through excessive use of resources, such as energy and water, and large carbon dioxide emissions. In this paper we revisit the study of Eichholtz et al. (2010) about the economics of environmentally sustainable buildings and estimate the effect of green building practices on market rents. For this, we use new matching methods that take advantage of the clustered structure of the buildings data.

Until fairly recently, the main approach to getting business to respond to climate change has been top-down efforts to regulate emissions and enact various forms of "carbon pricing." The aim of such efforts has been to make businesses "internalize" the costs associated with greenhouse gas (GHG) emissions. Governments are expected to set the environmental protection rules for companies in their respective countries, and markets are expected to adjust to the new regulations and carbon prices.

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I was thrilled to see thousands of activists and celebrities marching through Manhattan Sunday calling on the United Nations and government leaders to do more on climate change. Inaction by U.S. politicians is always at the epicenter of these calls, given Washington's lack of consensus on the issue. But this overlooks the track record of this country when it comes to reducing greenhouse gas emissions.

We develop a simple dynamic investment strategy that allows long‐term passive investors to hedge climate risk without sacrificing financial returns. Our proposed hedging strategy goes beyond a simple divestment of high carbon footprint or stranded assets stocks. This is just the first step. The second step is to optimize the composition of the low carbon portfolio so as to minimize the tracking error with the reference benchmark index. We show that tracking error can be almost eliminated even for a low carbon index that has 50% less carbon footprint.

A recent surge of research has investigated the potential of pro-environmental behavior interventions to affect other pro-environmental behaviors not initially targeted by the intervention. The evidence evaluating these spillover effects has been mixed, with some studies finding evidence for positive spillover (i.e., one pro-environmental behavior increases the likelihood of performing additional pro-environmental behaviors) and others finding negative spillover (i.e., one pro-environmental behavior decreases the likelihood of additional pro-environmental behaviors).