August 18, 2021

Jeffrey Wurgler is the Nomura Professor of Finance at New York University Stern School of Business, as well as MSQF Academic Director. He and his coworker, Johannes Stroebel, the David S. Loeb Professor of Finance at the New York University Stern School of Business and a Research Associate at the National Bureau of Economic Research, have recently published research on climate-change risks and asset markets.

Their research finds economists and financial professionals are at least 20 times more likely to believe that climate risk is underestimated by asset markets as opposed to overestimated. This is the belief held by “an overwhelming margin” of 861 finance academics, investment advisers, portfolio managers, regulators and policy economists. Stroebel and Wurgler said the concerns for regulatory risk cut across respondents, even to those not as convinced as others that climate change overall was a huge risk. Their report also reminded policy-makers that there’s still time for a fix.

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