The recent and on-going events in the world's financial markets demonstrate that finance theory remains far from perfected. Meanwhile, the threat of natural disasters continues to increase due to population growth, economic development, climate changes, geologic activity, and political unrest. To better understand and predict natural disasters and their consequences research and training are needed at the interface of geoscience and economics. New academic programs for graduate students in the area of catastrophe finance would help fill this need and could provide better tools and models for risk management and assessment. In turn, greater awareness of the geosciences by market professionals could help assist the spread of scientific knowledge. Importantly, such programs would train the next generation of professionals in finance and environmental organizations to use markets to the advantage of environmental programs and to anticipate the adverse consequences of financial innovation necessary for creating a sustainable future.
Eos, v90, 281-282. [membership required].
Listen to a BBC Radio 4 Podcast interview with Quentin Cooper.