{"id":18396,"date":"2026-09-09T12:42:57","date_gmt":"2026-09-09T11:42:57","guid":{"rendered":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/?p=18396"},"modified":"2026-09-09T12:42:57","modified_gmt":"2026-09-09T11:42:57","slug":"finance-research-seminar-professor-lasse-heje-pedersen","status":"publish","type":"post","link":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/2026\/09\/09\/finance-research-seminar-professor-lasse-heje-pedersen\/","title":{"rendered":"Finance Research Seminar \u2013 Professor Lasse Heje Pedersen"},"content":{"rendered":"<p><strong>Title<\/strong>: Climate Risk Pricing<\/p>\n<p><strong>Date<\/strong>: 9 December 2026<\/p>\n<p><strong>Time<\/strong>: 14:00 to 16:00<\/p>\n<p><strong>Venue: <\/strong>FDC.1.16<\/p>\n<p>If you would like to attend, please register using the following link<\/p>\n<p><a href=\"We%20develop%20an%20environmental%20macro-finance%20model%20to%20study%20how%20markets%20price%20transition%20and%20physical%20climate%20risks.%20When%20carbon%20taxes%20are%20below%20the%20social%20cost%20of%20carbon,%20raising%20them%20improves%20long-run%20welfare%20even%20as%20they%20reduce%20current%20output.%20Brown%20firms%20perform%20well%20in%20the%20%22bad%20economic%20states%22%20when%20low%20taxes%20let%20climate%20damage%20worsen.%20This%20hedging%20value%20gives%20them%20lower%20required%20returns,%20reversing%20standard%20ESG%20predictions.%20The%20green-minus-brown%20required%20return%20can,%20however,%20switch%20sign%20depending%20on%20how%20policy%20and%20climate%20shocks%20interact.%20Strikingly,%20climate-concerned%20investors%20optimally%20hedge%20by%20holding%20brown%20stocks,%20while%20skeptics%20hedge%20with%20green.%20More%20broadly,%20private%20hedging%20motives%20can%20diverge%20from%20societal%20climate%20objectives.\">Climate Risk Pricing<\/a><\/p>\n<p><strong>Speaker: <\/strong>Professor Lasse Heje Pedersen, Copenhagen Business School<\/p>\n<p><a href=\"https:\/\/www.lhpedersen.com\/\">Lasse Heje Pedersen<\/a><\/p>\n<p><strong>Abstract<\/strong>:<\/p>\n<p>We develop an environmental macro-finance model to study how markets price transition and physical climate risks. When carbon taxes are below the social cost of carbon, raising them improves long-run welfare even as they reduce current output. Brown firms perform well in the &#8220;bad economic states&#8221; when low taxes let climate damage worsen. This hedging value gives them lower required returns, reversing standard ESG predictions. The green-minus-brown required return can, however, switch sign depending on how policy and climate shocks interact. Strikingly, climate-concerned investors optimally hedge by holding brown stocks, while skeptics hedge with green. More broadly, private hedging motives can diverge from societal climate objectives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title: Climate Risk Pricing Date: 9 December 2026 Time: 14:00 to 16:00 Venue: FDC.1.16 If you would like to attend, please register using the following&#8230; <br \/><a href=\"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/2026\/09\/09\/finance-research-seminar-professor-lasse-heje-pedersen\/\" rel=\"bookmark\"><strong>Read more<\/strong><\/a><\/p>\n","protected":false},"author":11659,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[47,1038,210],"class_list":["post-18396","post","type-post","status-publish","format-standard","hentry","category-research","tag-finance","tag-finance-research-seminar","tag-research-seminar"],"acf":[],"_links":{"self":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/18396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/users\/11659"}],"replies":[{"embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/comments?post=18396"}],"version-history":[{"count":1,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/18396\/revisions"}],"predecessor-version":[{"id":18397,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/18396\/revisions\/18397"}],"wp:attachment":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/media?parent=18396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/categories?post=18396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/tags?post=18396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}