This chapter proposes a portfolio choice model that describes investors’ adaptation to climate change as a temporal process, in which investors’ perception of climate hazards shapes their preferences and decisions over the duration of their financial portfolios. Investors tend to revise,...

Despite the increasing significance of clean energy, the sector has not gained its formal status yet as a separate asset class. Instead, individual clean securities are scattered over conventional classes. We examine the reward of grouping clean equities into a separate new class. Using data...

In finance, investment decisions are commonly based on Markowitz's ex-ante mean-variance (MV) portfolio problem. The static ex-post trading problem, however, is completely absent. In this paper, we propose a theoretical extension of the MV framework by adding a time dimension so that the...