CMAP–CREST Quantitative Sustainable Economics and Finance Seminar 

The CMAP–CREST Quantitative Sustainable Economics and Finance (QSEF) Seminar is a monthly in-person seminar series hosted jointly by CMAP (École Polytechnique) and CREST (ENSAE Paris and École Polytechnique). It features research presentations addressing sustainable and green economics and finance issues through quantitative approaches. The seminar series is organized by Peter Tankov, Gauthier Vermandel, and Olivier David Zerbib.

Climate-related financial risks have become a central concern for investors, financial regulators, and macroeconomic policymakers. As climate change reshapes economic trajectories and amplifies uncertainties, understanding how these risks translate into asset prices is critical for safeguarding financial stability and designing effective transition strategies.

During this workshop, Lionel Melin, Associate Researcher at EDHEC Climate Institute , will present his work entitled “Quantifying Climate Risk Premia.” Building on climate physics, empirical estimates of economic damages, and transition costs, the research introduces a calibrated dual framework linking a climate module with a long-run-risks asset-pricing model. This integrated approach captures both physical damage and transition channels, as well as feedback effects from economic activity to global temperatures.

The results provide closed-form expressions for climate-affected risk-free rates, equity risk premia, and valuation ratios. A key insight is that chronic climate risks alone, excluding tipping points, may raise the equity risk premium by nearly 20% in a 3°C scenario, pointing to the likelihood of significant market repricing under continued warming.

If you are interested in being kept informed about the seminar series, please send your email address to the following generic address: [email protected].