Measuring and modelling climate policy uncertainty

• Applicants: Professorin Dr. Nicole Branger; Professorin Dr. Monika Gehde-Trapp; Professorin Dr. Melanie Schienle
• Subject Area: Accounting and Finance
• Term: since 2025
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 509303834

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.

• DFG Programme: Research Units
• Subproject of: FOR 5583: Asset allocation and asset pricing in regulated markets and institutions