The Economic Focus on Climate: A Reflection of 2024’s AEA/AFA Conference
Introduction
The 2024 Annual Conference of the American Economic Association (AEA) and the American Finance Association (AFA) served as a resounding testament to the growing prominence of climate change as a central topic in economic research and policy discussions. This report delves into the conference’s key takeaways, highlighting the breadth of research focusing on climate-related issues across various economic subfields.
Climate Change Takes Center Stage
The conference served as a microcosm of the economics profession’s preoccupation with climate change, reflecting the urgency of addressing this global challenge. A significant portion of the papers presented explored the economic implications of climate change and the transition to a low-carbon economy.
Diverse Research Themes
The conference hosted a diverse range of research papers examining climate change from multiple perspectives. Some notable themes included:
Local Economic Impact of Renewable Energy:
Research explored the economic benefits of wind turbine manufacturing and the stability of electricity grids as they integrate more renewable energy sources.
Electric Vehicles and Housing Choices:
Studies analyzed how the adoption of electric vehicles influences housing preferences and choices.
Financial Impact of Wildfire Smoke:
Researchers investigated the economic strain caused by wildfire smoke on household finances.
Flood Risk Mitigation in Venice:
A study evaluated the potential benefits of constructing a sea wall to reduce flood risk in Venice, Italy.
Climate Policy Uncertainty:
Research examined the economic drag caused by uncertainty surrounding climate policy.
Climate-Displaced Migrants:
Studies analyzed the flow of migrants displaced by extreme weather events.
Banks’ Exposure to Emissions Regulations:
Research explored the financial risks faced by banks due to emissions regulations.
Impact of Temperature on Factory Productivity:
Studies investigated the relationship between higher temperatures and reduced factory productivity.
ESG Investing Dominates Finance Association Submissions
The American Finance Association (AFA) witnessed a surge in submissions related to environmental, social, and governance (ESG) investing, reflecting the growing interest in sustainable and responsible finance. The AFA president noted that half of the submitted papers focused on ESG issues, highlighting the demand for research in this area.
Keynote Address: Renewable Energy and Air Pollution
The conference’s keynote lecture, delivered by environmental economist Michael Greenstone, focused on the global challenge of transitioning to renewable energy sources. Dr. Greenstone emphasized the potential for such a shift to alleviate air pollution, particularly in developing countries where air quality poses significant health risks.
Conclusion
The 2024 AEA/AFA conference served as a resounding testament to the growing recognition of climate change as a critical economic issue. The breadth of research presented at the conference underscores the urgency of addressing climate-related challenges and the need for interdisciplinary collaboration to develop effective solutions. As the world grapples with the implications of climate change, economists play a crucial role in shaping policies and strategies that promote a sustainable and resilient future.