Climate Policy Uncertainty

The CPU database proposes a new indicator of Climate Policy Uncertainty (CPU) based on newspaper coverage frequency.

The indicator spikes near major political events and during major discussions around potentially significant climate policy changes. Using a global firm-level dataset, the empirical analysis shows that Climate Policy Uncertainty is associated with economically and statistically significant decreases in investment, particularly in pollution-intensive sectors that are most exposed to climate policies, and among capital intensive companies.
More information : Berestycki, C., et al. (2022), "Measuring and assessing the effects of climate policy uncertainty", OECD Economics Department Working Papers, No. 1724, OECD Publishing, Paris. .

https://doi.org/10.1787/34483d83-en .

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