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Pari Sastry

@parisastry.bsky.social
688 followers 112 following 29 posts

Finance AP at Columbia GSB sites.google.com/view/parisastry Study climate finance, banks, insurance & mortgages Finance PhD @MIT Prev. at USTreasury, FSB_TCFD, BrookingsInst, NewYorkFed

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Pari Sastry @parisastry.bsky.social · 14/03/2025
Private companies use NOAA and USGS data extensively for modeling risks. NOAA weather alerts save lives. These are public goods. www.ft.com/content/33a4...
ft.com
Insurers warn that US weather agency mass firings will hit climate risk data
[FREE TO READ] Reinsurance trade group appeals to US commerce secretary Lutnick to preserve data collection after thousands of jobs axed
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Daniel Swain @weatherwest.bsky.social · 28/02/2025
The mass firing of both new hires and recently promoted senior staff within #NOAA, including mission-critical and life-saving roles at the National Weather Service (#NWS), is profoundly alarming. 1/11
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Pari Sastry @parisastry.bsky.social · 25/02/2025
Fed Vice Chair, Michael Barr: “Often the structure and regulation of insurance markets prevents risk from being appropriately priced, limiting the ability of market signals to influence development and adaptation in high-risk areas and contributing to the buildup of risks.” Bingo.
federalreserve.gov
Speech by Vice Chair for Supervision Barr on supervision and regulation
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David Roberts @volts.wtf · 17/02/2025
So ... what's waiting in the queues? Ah. emp.lbl.gov/queues
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Pari Sastry @parisastry.bsky.social · 08/02/2025
Spatial data folks… AER data editor saying that they’ve already seen impacts on census bureau shapefiles !! With some of these possibly being difficult to access or taken down. We have to archive everything! Maybe we should coordinate to create a source of archived data for researchers?
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Pari Sastry @parisastry.bsky.social · 20/01/2025
Thank you for these estimates! I have been following closely, it’s helpful to see these in real time. One question — do you have any analysis, or does anyone have any estimates, of FAIR plan exposures in the impacted zip codes? And a $value of their (gross or net) liability from the fires?
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Pari Sastry @parisastry.bsky.social · 20/01/2025
Thank you Catherine!!
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Pari Sastry @parisastry.bsky.social · 17/01/2025
Thanks Emily!
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Pari Sastry @parisastry.bsky.social · 16/01/2025
www.nytimes.com/2025/01/16/o... My coauthor Ishita and I wrote a piece that ran today in the NYT about how we need to have risk-based pricing in insurance & mortgages.
nytimes.com
Opinion | Our Insurance System Subsidizes Moves to Disaster Zones
Our policies encourage Americans to flock to areas particularly prone to climate-related disasters.
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Pari Sastry @parisastry.bsky.social · 09/01/2025
So sad to read about the fires. It may take months/yrs to recover. Climate losses are rising, with largely unknown implications for banks, insurers & HHs. This is why I get mad when academics imply that climate research is just "trendy". These issues are here to stay & we need to understand it.
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Pari Sastry @parisastry.bsky.social · 04/01/2025
Takeaway: These are a number of policies that can be put in places to address these skewed incentives.
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Pari Sastry @parisastry.bsky.social · 04/01/2025
Aymeric Bellon’s JMP also shows that forcing *lenders* to bear some of these costs also helps to reduce pollution: papers.ssrn.com/sol3/papers....
papers.ssrn.com
Fresh Start or Fresh Water: The Impact of Environmental Lender Liability
I study the impact of lenders’ environmental responsibility. My empirical setting exploits the U.S. Lender Liability Act of 1996, which reduced lenders' exposur
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Pari Sastry @parisastry.bsky.social · 04/01/2025
Here is a link to Jud’s paper www.aeaweb.org/articles?id=...
aeaweb.org
Drilling Like There's No Tomorrow: Bankruptcy, Insurance, and Environmental Risk
(February 2019) - This paper measures the effects of bankruptcy protection on industry structure and environmental outcomes in oil and gas extraction. Using administrative data from Texas, I exploit v...
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Pari Sastry @parisastry.bsky.social · 04/01/2025
Gambling for resurrection: Financially distressed oil companies drill using more toxic/polluting approaches. Judson Boomhower’s *amazing* JMP shows that forcing them to buy liability insurance ex-ante gets them to internalize these costs & thus reduce pollution. www.propublica.org/article/oil-...
propublica.org
The American Oil Industry’s Playbook, Illustrated: How Drillers Offload Costly Cleanup Onto the Public
Oil executive Tom Ragsdale walked away from his old wells, making the pollution left behind the state of New Mexico’s problem. His tactics, however, are ubiquitous in the industry.
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Pari Sastry @parisastry.bsky.social · 02/01/2025
From a decarbonization standpoint, this isn’t necessarily bad. They can pursue their portfolio decarbonization goals without being accused of antitrust violation. This is why we studied the details of their *targets*, not just whether they were members or not.
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Pari Sastry @parisastry.bsky.social · 02/01/2025
Most of the major American banks (besides JPMC) have quit the Net Zero Banking Alliance - now Goldman Sachs, Citi, Morgan Stanley, Wells Fargo and Bank of America are reportedly out. Importantly- they’ve all kept their interim decarbonization targets for 2030. www.bloomberg.com/news/article...
bloomberg.com
Morgan Stanley Follows Citi, BofA in Quitting Climate Group
Morgan Stanley terminated its membership of a major climate-banking group, joining a wave of Wall Street firms that recently quit a global alliance intended to aid the reduction of greenhouse-gas emis...
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Pari Sastry @parisastry.bsky.social · 31/12/2024
Yes I want to see that too! Seemed quite slapstick to me as well at first blush, but I’ve heard from a few people that they liked it
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Pari Sastry @parisastry.bsky.social · 31/12/2024
I am broadly optimistic because on balance it seems like green substitutes are growing cheaper over time (even when accounting for the subsidies), and brown stuff is struggling to compete. We let’s see.
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Pari Sastry @parisastry.bsky.social · 31/12/2024
There are many reasons to be pessimistic though: 1. Uncertainty about IRA’s fate will depress green investment. 2. Plans to open federal lands for drilling & building 3. Discussion around subsidizing fossil fuels 4. US support of the MDBs / blended finance likely to be cut
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Pari Sastry @parisastry.bsky.social · 31/12/2024
Going into 2025, reasons to be hopeful about #climate: Politics has changed the returns to greenwashing, but not green investment…as long as the IRA is preserved. Green jobs being in red states makes this likely IMO. + interest in permitting reform for transmission bottlenecks.
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Tyler Norris @tnorris.bsky.social · 30/12/2024
At nearly $3 billion, storm restoration costs for 2024 estimated by Duke Energy appear to be the highest for any US electric utility ever for a single storm season (Hurricane Sandy likely higher in aggregate, but not for one utility). Via S&P: www.spglobal.com/marketintell...
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Pari Sastry @parisastry.bsky.social · 23/12/2024
Here is a link to the paper: papers.ssrn.com/sol3/papers....
papers.ssrn.com
When Insurers Exit: Climate Losses, Fragile Insurers, and Mortgage Markets
<div> Despite growing climate losses, Americans continue to move into high risk areas. This paper uses a range of natural experiments to show how mispricing of
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Pari Sastry @parisastry.bsky.social · 23/12/2024
An interesting story! Strongly relates to our paper on on Fannie & Freddie, and insurance insolvency in Florida. A lot of people think they are fully insured, but find after the fact that their damages aren’t covered. Extremely sad. papers.ssrn.com/sol3/papers....
papers.ssrn.com
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Pari Sastry @parisastry.bsky.social · 21/12/2024
Argh I mean Robert Shiller*
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Pari Sastry @parisastry.bsky.social · 11/12/2024
Not exactly a population decline, but it is likely that risk-based ricing would lead to a reduction in population growth in high risk areas
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Pari Sastry @parisastry.bsky.social · 11/12/2024
That is so kind, thank you so much!! Looking forward to engaging on these issues more, and would love to hear any comments you might have!
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Pari Sastry @parisastry.bsky.social · 11/12/2024
Thanks Ben!! Yes, I know we are definitely on the same page about this :)
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Pari Sastry @parisastry.bsky.social · 11/12/2024
Mispricing of climate risk is more dangerous than other mispricing. It's not only a large redistribution, it's distortionary because it incentivizes population growth & building in high risk areas! (This is the point of my recent work with Ishita & Ana-Maria)
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Pari Sastry @parisastry.bsky.social · 11/12/2024
Happy to share my opinion piece with Stijn on how the GSEs should price climate risks, and the risks that emerge when they don't. www.marketwatch.com/story/your-h...
marketwatch.com
Your home insurance costs more in high-risk areas. Your mortgage should, too.
Fannie Mae and Freddie Mac don’t factor climate change into rates. More frequent floods, hurricanes and wildfires raise systemic default risk.
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Pari Sastry @parisastry.bsky.social · 08/12/2024
“All we imagine as light“ Is amazing. It’s a collaboration between Indian & European production houses + the first Indian film to win the Grand Prix at Cannes. Really visually stunning, with a compelling plot, & subtle but on-point political commentary (IMO). Best new film I’ve seen in a while.
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Pari Sastry @parisastry.bsky.social · 04/12/2024
No worries, I may just use your slide :) Here is my particular application of using AI for climate investing: using LLMs on corporate communications to categorize green/brown firms, and giving an example to students of coming up with a good prompt for doing this
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Pari Sastry @parisastry.bsky.social · 03/12/2024
This is great! Is this written up somewhere? I am doing some text-based stuff now and would love to better understand this
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Ben Keys @benkeys.bsky.social · 01/12/2024
Mark Cuban gets it. See my op ed from last year: www.nytimes.com/2023/05/07/o...
nytimes.com
Opinion | Your Homeowners’ Insurance Bill Is the Canary in the Climate Coal Mine (Published 2023)
Wharton’s Ben Keys on how climate change is already reshaping the insurance and housing markets — and how our denial is only making the problem worse.
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