Climate-Related Financial Stability Risks for the United States: Methods and Applications

Museum & Visits Regional Economy Data & Statistics Careers Blog Press Center

About the New York Fed
- About the New York Fed
- What We Do
- Who We Are
  - Bank Leadership
  - Diversity and Inclusion
- Communities We Serve
- Governance
- More About Us
- At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  Do you have a request for information and records? Learn how to submit it.
  
  Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
Markets & Policy Implementation

Economic Research
- Economic Research
- U.S. Economy
  - Consumer Expectations & Behavior
  - Growth & Inflation
  - Labor Market
  - Financial Stability
  - Banking
- REGIONAL ECONOMY
- RESEARCHERS
  - PUBLICATIONS
  - RESEARCH CENTERS
  - CALENDAR

Financial Institution Supervision
- Financial Institution Supervision
- Supervision & Regulation
  - Circulars
  - Regulations
- Reporting Forms & Instructions
  - Reporting Forms
  - Correspondence
- Bank Applications
- Consumer Protection
  - Community Reinvestment Act Exams
  - Frauds and Scams
- As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system.
  
  The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
  
  Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
  
  The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
Financial Services & Infrastructure
- Financial Services & Infrastructure
- Financial Services & Operations
- Financial Market Infrastructure & Reform
- The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
  
  The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
  
  The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
  
  The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
Community Development
& Education

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

By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement.