FOR 5583 - TP4: Measuring and modelling climate policy uncertainty

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Project status	granted
Project time	01.10.2026- 30.09.2030
Funding source	DFG - Research Unit
Project number	BR 2923/3-1
Keywords	Unsicherheit; Klimapolitik; Finanzmärkte

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This project explores the impact of climate policy uncertainty on the real economy and financial markets. First, we aim to understand the effects on decision-makers in the real economy, financial intermediaries, and households. Second, we model and empirically identify its influence on asset prices. Key features of our approach are: i) the development of new ways to measure climate policy uncertainty based on new data sources such as news feeds; ii) the appropriate enhancement of asset pricing models; iii) the analysis of the role of financial intermediaries. All three innovations target to provide novel insights for policymakers and market participants.