Quo Vadis Climate Transition Risk? A Literature Review and Recommendations
DOI:
https://doi.org/10.12775/CJFA.2024.008Keywords
climate change, transition risk, interconnectedness, systemic risk, financial stabilityAbstract
This paper examines the academic research on climate transition risk. The objective of this study is to provide descriptive characteristics of research trends in the field of climate transition risk and make recommendations based on major bibliometric data such as authors, journals, citation figures, methodology, geographical focus and author’s location. The systematic literature review methodology was used to obtain information on publications and intellectual structure related to climate transition risk from the Scopus bibliographic database until November 2023. A search strategy was developed to screen the title for eligibility, using the abstract and full text where needed. The review showed that annual evolution has increased significantly in recent years. Findings revealed a marked European and Chinese dominance with little contribution from Global South in this research field with limited contributions from Global South in terms of focus and authors and organizations contributions. The predominant data source is data-set indices, with limited methodological diversity in climate transition risk research. Findings also showed that authors from universities, research institutes and central banks are contributing to climate transition risk literature. The main themes in climate transition risk research are banking, climate policy, stock market, and asset price and performance. The impacts of climate change on interconnectedness, systemic risk and financial stability were widely covered in overlapping publications.
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