Template-Type: ReDIF-Article 1.0

Author-Name: Orsolya Szendrey 
Author-Workplace-Name: University of Debrecen
Author-Email: szendrey.orsolya@econ.unideb.hu

Author-Name: Mihaly Dombi 
Author-Workplace-Name: University of Debrecen
Author-Email: dombi.mihaly@econ.unideb.hu


Title: Measuring Climate Risks with Indirect Emissions

Abstract: Climate change poses completely new challenges for the financial markets, and thus
the consideration of green aspects is becoming explicitly required by regulators and
investors. Most of the reports which influence the market in this way evaluate the
climate or environmental impact of a product or process based on their alignment
with a regulatory standard. However, the methods applied for measurement do not
always provide a proper description of the relationship between the investments
and the natural resources. Most analyses evaluate investments related to economic
sectors based exclusively on direct emissions, while indirect impacts, which represent
a substantial part of total emissions, are not taken into account. In the study, the
methods and results which are currently applied are compared to calculations
including indirect impacts as well.

Classification-JEL: E58, G21, Q53, Q54
Keywords: climate change, sectoral exposure, greenhouse gas emissions, indirect flows
Pages: 57-76
Volume: 22
Issue: 1
Year: 2023
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-22-1-st2-szendrey-dombi.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:22:y:2023:i:1:p:57-76