The juncture among economics, the energy sector, climate and risk has been well researched and published throughout the academic literature. Yet, these particular academic theories and models rarely infiltrate the business world. Indeed, econometrics are widely used in industry, but are often based on antiquated and limited input variables.
Growing awareness and social pressure around climate change has led to the development of over 400 national and international corporate carbon disclosure schemes. Approximately 90% of FTSE 100 and 80% of Fortune Global 500 companies participate in at least one of these schemes (EY 2017). Beyond good public relations and expectations for regular reporting on corporate social responsibility, the reporting of climate change risk – physical, financial, legal - for corporations and for investment more generally has increasingly been recognized as a vital necessity for understanding risk and for making smart investment and policy choices for an uncertain future. How should climate risk for corporations and investment be measured and communicated? Can climate risk for corporations and investors be adequately assessed based on publicly accessible information? How should corporations and their managers be held accountable for climate risks?
This panel seeks to discuss issues surrounding the creation and usage of models for evaluating and communicating the risk of climate change to businesses and their investors. Specifically, we seek to explore regulatory risk and associated costs for businesses involved in energy generation, transmission and distribution. Further, the role and usage of academic consultants in the designing of relevant econometrics within profit-based ventures will be examined.
Practitioners and academics on the panel will briefly present their ideas on the above related issues, followed by a discussion amongst all participants. Topics we hope to cover include (but are not limited to): Should executive compensation be based on a company’s preparedness and ability to mitigate various climate change risks? How reliable, and what level of accuracy can be obtained for econometrics using publicly accessible data? Is an economic input-output model relevant in assessing climate change risk?
|Introduction||Marcos Luna Salem State University||12|
|Panelist||Lorri Krebs Salem State University||15|
|Panelist||Marcos Luna Salem State University||15|
|Panelist||David Strohschein Salem State University||15|
To access contact information login