Well, I certainly don’t know any analyst claiming to consider GCRs when evaluating an asset, but maybe I should have searched better. I’d like to be proved wrong. But it’s actually hard to price worst-case scenarios: On Modeling and Interpreting the Economics of Catastrophic Climate Change | Martin Weitzman (harvard.edu) I think “Weitzman’s dismal theorem” is the climate economics version of “fanaticism” debates in EA. And this is one of the core objections of Stern against IAMs.
So I think it’s fair to have a high credence that GCRs are not usually internalized into asset prices.
Well, I certainly don’t know any analyst claiming to consider GCRs when evaluating an asset, but maybe I should have searched better. I’d like to be proved wrong.
But it’s actually hard to price worst-case scenarios: On Modeling and Interpreting the Economics of Catastrophic Climate Change | Martin Weitzman (harvard.edu)
I think “Weitzman’s dismal theorem” is the climate economics version of “fanaticism” debates in EA. And this is one of the core objections of Stern against IAMs.
So I think it’s fair to have a high credence that GCRs are not usually internalized into asset prices.