Economic Policy Review
Climate-Related Financial Stability Risks for the United States: Methods and Applications
Volume 30, Number 1
October 2024

JEL classification: C10, D58, G10, G20, Q54

Authors: Celso Brunetti, Matteo Crosignani, Benjamin Dennis, Gurubala Kotta, Donald P. Morgan, Chaehee Shin, and Ilknur Zer

The authors review ten broad classes of models that have been used to study potential financial stability risks arising from climate change in the United States. Their lens is primarily methodological: They describe each modeling technique, its advantages and disadvantages, and its key results. They find that statistical methods, based on reduced-form econometrics, are the most used tool, followed by general equilibrium models. While no approach in isolation addresses the complexity of climate-related financial stability risks, they discuss how existing techniques can be combined to inform policymakers and the private sector about climate-related financial stability risks for the United States.

Full Article
Author Disclosure Statement(s)
Celso Brunetti
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Matteo Crosignani
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Benjamin Dennis
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Gurubala Kotta
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Donald P. Morgan
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Chaehee Shin
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Ilknur Zer
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Suggested Citation:
Celso Brunetti, Matteo Crosignani, Benjamin Dennis, Gurubala Kotta, Donald P. Morgan, Chaehee Shin, and Ilknur Zer. 2024. “Climate-Related Financial Stability Risks for the United States: Methods and Applications.” Federal Reserve Bank of New York Economic Policy Review 30, no. 1, October. https://doi.org/10.59576/epr.30.1.1-37

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