Markets are superb at turning what participants believe to be facts into prices. An intriguing new National Bureau of Economic Research study on market expectations about climate change looks at the price trends of Chicago Mercantile Exchange (CME) weather futures contracts. "The evidence shows that financial markets fully incorporate climate model projections," conclude Columbia University's agricultural and resource economist Wolfram Schlenker and sustainable development researcher Charles Taylor. "We find that the market has been accurately pricing in climate change, largely in line with global climate models, and that this began occurring at least since the early 2000s when the weather...