CLIMATE RISK & FINANCIAL INSTITUTIONS

This seminar will explore how the law shapes the assessment of, and response to, the financial risks of climate change. We'll look, for example, at how misaligned incentives for risk-taking (such as between a developer and a house buyer, or between a corporation and its insurer) lead to overdevelopment in flood plains and areas with high wildfire risk. After an introduction to the economics of climate change, we'll turn to questions like: What role do securities regulators, insurance commissioners, and central bankers play in the transition to a greener economy' What does "ESG" investing mean and does it do anything' Are markets foreseeing both physical risks and transition risks (i.e., stranded assets)' Our approach will consider the political economy of risk bearing, and investigate dynamics like the influence of credit ratings agencies on local government investment in sea-level rise adaptation. UPPER-CLASS WRITING REQUIREMENT: This class may be used to satisfy the requirement. GRADING NOTICE: This class will not offer the CR/NC/H option. **A student who fails to attend the initial meeting of a seminar (designated by an (S) in the title), or to obtain permission to be absent from either the instructor or the Registrar, may be administratively dropped from the seminar. Students who are on a wait list for a seminar are required to attend the first seminar meeting to be considered for enrollment.