VoxEU column on our recent paper on climate-related central bank communication: cepr.org/voxeu/column... @granthamlse.bsky.social @rff.org
Central banks have increasingly engaged with climate-related topics in their public communication, but little is known about the drivers and effects of this shift. This column presents a comprehensive analysis of climate-related central bank communication using a novel dataset of over 35,000 speeches from 131 central banks spanning 1986-2023. The authors find that climate communication (1) follows two distinct narratives ('green finance' verus 'climate-related risks'); (2) is driven more by institutional factors than climate exposure; and (3) significantly affects stock market returns, with greener firms outperforming when central banks focus more on climate issues.
35,000 speeches from 131 central banks show that #climate communication follows two distinct narratives and significantly affects stock market returns of greener firms.
@emacampiglio.bsky.social, @jdeyris.bsky.social, @davideromelli.bsky.social, Ginevra Scalisi
cepr.org/voxeu/column...
#EconSky
