Hong Kong Climate Policy Uncertainty Index (HKCPU)

The Hong Kong Climate Policy Uncertainty (HKCPU) Index is a novel, data-driven measure designed to track the evolution of climate policy uncertainty in Hong Kong through media analysis. By systematically analyzing news coverage from major local publications, the HKCPU Index provides researchers, policymakers, and financial institutions with a standardized tool to assess climate-related policy risks and public discourse.

Key Features

• Dual Indices for Precision – The index comprises two complementary measures:

  • HKCPU-total: Tracks the co-occurrence of climate, policy, and uncertainty terms, reflecting overall media visibility of climate policy risks.

  • HKCPU-CP: Calculates the proportion of climate-policy articles framed around uncertainty, isolating perceived policy risk from general coverage.

• Longitudinal Analysis – The dataset spans January 1998 to present, enabling trend analysis and correlation with economic, financial, and environmental shifts.

• Transparent Methodology – Built on established frameworks from climate and economic policy uncertainty research, ensuring robustness and comparability.

Why It Matters

Hong Kong’s Climate Action Plan 2050 commits to carbon neutrality, yet transparency gaps in policy implementation and green finance effectiveness contribute to uncertainty. Unlike the US and Mainland China, Hong Kong lacks a dedicated climate policy uncertainty metric—until now. The HKCPU Index fills this gap, offering:

• Governments: Improved macroeconomic forecasting and policy planning.

• Financial Institutions: Quantifiable climate risk assessment for investments.

• Academics: Empirical data to study climate policy’s impact on emissions, innovation, and green finance.

Methodology & Data

The HKCPU Index follows the methodology of Gavriilidis (2021) and Baker, Bloom & Davis (2016), adapted for Hong Kong’s media landscape. It analyzes 10 major newspapers, including South China Morning Post, Ming Pao, and Oriental Daily, sourced from Factiva and Wisers Information Portal.

Each index is standardized, cross-validated, and normalized to a baseline mean of 100 (1998–2024).

Support & Collaboration

Developed with data support from Wisers Information Limited and funded by the Hong Kong RGC Theme-Based Research Scheme (TRS 2021/22) under "Developing Hong Kong as a Global Green Finance Centre."

Explore the HKCPU index at: https://hkcpu.hkust.edu.hk/