Search

While political debates on climate change become increasingly heated, our houses and city infrastructure continue to suffer from an increasing trend of damages due to adverse atmospheric events, from heavier-than-usual rainfalls to heat waves, droughts, and floods. Adapting our homes and critical infrastructure to sustain the effects of climate dynamics requires novel data-driven interdisciplinary approaches for efficient risk mitigation. We develop a new systematic framework based on the machinery of statistical and machine learning tools to evaluate water-related home insurance risks and quantify uncertainty due to varying climate model projections. Furthermore, we introduce the concept of data depth to the analysis of weather and climate ensembles, which remains a novel territory for statistical depth methodology as well as the field of environmental risk and ensemble forecasting in general. We illustrate the new data-driven methodology for risk analysis in application to rainfall-related home insurance in the Canadian Prairies over 2002–2011. Supplementary materials accompanying this paper appear online. [ABSTRACT FROM AUTHOR]

Concurrent compound dry and hot events (CDHEs) amplified more damange on the ecosystems and human society than individual extremes. Under climate change, compound dry and hot events become more frequent on a global scale. This paper proposes a mathematical method to quantitatively attribute changes of CDHEs to changes of precipitation, change in temperature and change in the dependence between precipitation and temperature. The attribution is achieved by formulating the total differential equation of the return period of CDHEs among Meta-gaussian model. A case study of China is devised based on monthly precipitation and temperature data during the period from 1921 to 2020 for 80 major river basins. It is found that temperature is the main driving factor of increases in CDHEs for 49 major river basins in China, except for the upper and middle reaches of the Yangtze River. In West China, precipitation changes drove the increase in CDHEs in 18 river basins (23%), particularly in parts of North Xinjiang, Qinghai and Gansu. On the other hand, dependence between precipitation and temperature dominated changes of CDHEs in 13 river basins (16%) of China with other factors, including parts of South China, East China and Northwestern China. Furthermore, changes in both the mean and spread of precipitation and temperature can also contribute to changes in CDHEs. [ABSTRACT FROM AUTHOR]

Changes in patterns of meteorological parameters, like precipitations, temperature, wind, etc., are causing significant increases in various extreme events. And these extreme events, i.e., floods, heatwaves, hurricanes, droughts, etc., lead to a shortage of water resources, crop failures, wildfires, and economic losses. However, Global Circulation Models (GCMs) are considered the most important tools for quantifying climate change. Therefore, we selected 20 different GCMs of precipitation in our research, as the frequency of extreme events, like drought and flood, is highly related to changes in precipitation patterns. However, this research introduced a new weighting scheme — MCFSAWS-Ensemble: Monte Carlo Feature Selection Adaptive Weighting Scheme to Ensemble multiple GCMs, whereas, Monte Carlo Feature Selection (MCFS) is one of the most popular algorithms for discovering important variables. However, the proposed weighting scheme (MCFSAWS-Ensemble) is mainly based on two sources. Initially, it evaluates the prior performance of each GCM model to define their relative importance using MCFS. Then, it computes value by value difference between the observed and simulated model. In addition, the application of this paper is based on the monthly time series data of precipitation in the Tibet Plateau region of China. In addition, we used twenty GCMs from the Coupled Model Intercomparison Project Phase 6 (CMIP6) to analyze the implications of the MCFSAWS-Ensemble. Further, we compared the performance of the MCFSAWS-Ensemble scheme with Simple Model Averaging (SMA) through Mean Average Error (MAE) and correlation statistics. The results of this research indicate that the proposed weighting scheme (MCFSAWS-Ensemble) is more accurate than the SMA approach. Consequently, we recommend the use of advanced machine learning algorithms such as MCFS for making accurate multi-model ensembles. [ABSTRACT FROM AUTHOR]

This paper matched the data for all non-financial listed firms in China from 1990 to 2017 with weather data and used temperature and precipitation to represent climate change. Using daily temperature and daily precipitation data, we constructed temperature bins and precipitation bins. This study presents a potential first empirical analysis that applies the risk perception theory to comprehensively examine the impacts of daily temperature and daily precipitation on firms' debt financing costs. Compared to a day with a suitable temperature, a day with temperatures above 30 °C increases firms' debt financing costs by 0.2411%. Compared to a sunny day, a day with torrential rain increases firms' financing costs by 0.2697%. Approximately $122.13 million and $20.49 million in extra costs were incurred across all firms in 2017. We conducted a series of heterogeneity tests. We found that the negative impacts of climate change on debt financing costs are greater for firms that investor considers more vulnerable. Finally, we found two possible mechanisms. First, from the firm's subjective initiative perspective, firms that respond proactively during seasons of high temperatures and heavy rains can reduce the negative impacts. Second, adverse weather caused by climate change may also increase firms' debt financing costs by blocking travel. These results enrich the literature on firms' debt financing costs and contribute to the understanding of climate change's impact on firms. [Display omitted] • An extra high-temperature day increases firms' debt financing cost by 0.2411%. • An extra heavy-rain day increases firms' debt financing costs by 0.2697%. • The negative impacts will be greater for those firms that investor considers more vulnerable. • Firms' response proactively can reduce the negative impacts. • Climate change also may increase firms' debt financing costs by blocking travel. [ABSTRACT FROM AUTHOR]