Thomas Vladeck

This paper analyzes the risk of losses in the financial value of existing fossil fuel assets (so-called “asset stranding”) in a transition to a low-carbon economy.

In The Policy Climate, we offer an overview of policy issues relevant to climate change across the world. We find that the implementation of policy relevant to climate change, and its impact, accelerated markedly over the last decade, despite the slow pace of international climate negotiations.

In this project, we focus on:
1.Brazil, China, India, Europe, and the United States—These regions not only represent the majority of global greenhouse gas emissions but vary widely in terms… Show more

In The Policy Climate, we offer an overview of policy issues relevant to climate change across the world. We find that the implementation of policy relevant to climate change, and its impact, accelerated markedly over the last decade, despite the slow pace of international climate negotiations.

In this project, we focus on:
1.Brazil, China, India, Europe, and the United States—These regions not only represent the majority of global greenhouse gas emissions but vary widely in terms of economic development, natural resource endowment, political system, and climate policy, and can offer different lessons to policymakers;
2. The economic sectors that represent the greatest potential for greenhouse gas mitigation within each of these regions; and
3.A defined set of policy issues within these regions and key sectors that most affect climate change.

For each of the sectors covered in these regions, we provide stylized facts and data about emissions trends, as well as a summary of drivers for those emissions over the last 20 to 30 years. Since institutional and political issues are such an important factor in the climate story, we also include a summary of the most important political considerations and policy directions for each of the geographies covered, as well as highlight important policy issues that cut across geographic boundaries. In so doing, The Policy Climate also highlights important issues that form the basis of CPI’s work.
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This paper discusses the relationship between the risk of climate change occurring, optimal investment, and efficient adaptation to climate change. Different forms of adaptation are classfied, and the importance of private adaptation that occurs in advance of climate change is discussed. A conceptual framework is developed that distinguishes climate risk - the risk that the climate changes - from weather risk - the risk that a certain weather event occurs. It is argued that failing to incorporate… Show more

This paper discusses the relationship between the risk of climate change occurring, optimal investment, and efficient adaptation to climate change. Different forms of adaptation are classfied, and the importance of private adaptation that occurs in advance of climate change is discussed. A conceptual framework is developed that distinguishes climate risk - the risk that the climate changes - from weather risk - the risk that a certain weather event occurs. It is argued that failing to incorporate this risk into investment decisions will lead to inefficient adaptation. Instruments capable of transferring this risk are identified. A time series of catastrophe bonds, one such instrument, is studied for evidence that more or less climate risk is traded in the economy. The evidence indicates that there is very little market for climate risk; the implications of this and possible policy responses are discussed.??? Show less