Robert Repetto
Professor in the Practice of Economics and Sustainable Development
Research Statement
The primary area of my research in the past two years has been the responsiveness of capital markets to the material financial risks that publicly listed companies face as a result of their environmental exposures. This research has involved developing and applying improved empirical methodologies for estimating such risks. It has also involved investigating the disclosure practices of U.S. companies, their compliance with current SEC disclosure regulations, and SEC’s interpretation and enforcement of disclosure issues involving material environmental information. This research has focused on the forest products, electric utilities and mining industries. It has also involved a comparative assessment of relevant financial disclosure rules for publicly traded companies in the U.S., Canada, and Mexico.
A second area of research interest is the mix of U.S. government policies that promote or discourage adaptation to climate change in this country. Since past emissions have committed the world to a significant degree of climate change, adaptation by private and public entities is an important response in order to limit damages. It is reasonable to assume that adaptive responses will be affected by several factors under the influence of government, such as the availability of information regarding climate change, the availability of government programs that shift financial liability from vulnerable entities to the general taxpayer, and other policies and programs. My interest is in assessing current government programs and policies for their likely impact on adaptation and in investigating potential policy changes that would more effectively stimulate adaptive responses.
A third area of research interest is the application of the theory of non-convex non-linear dynamic systems to the study of environmental policy change. Such systems are characterized by local stability, global instability, phase changes and “punctuated equilibria.” Models embodying these features have been useful in analyzing issues in economics, organizational change, politics, and business innovation, as well as in the natural sciences. The histories of many environmental policies exhibit similar features. It is possible that the application of complexity theory may lead to more relevant analysis of policy issues and thereby improve understanding of the requirements for policy change.
