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Product service systems (PSS) are an example of a novel business model billed as having the potential to significantly reduce the environmental burdens of production and consumption processes. However, despite widespread interest in PSS, consensus regarding their actual environmental impacts, particularly with regard to salient issues such as global warming, is lacking. Hence this paper explores existing research to investigate the state of the art regarding the climatic impacts of PSS, alongside the set of factors that influence climatic impacts. The paper comprises a systematic review of peer-reviewed academic literature, quantifying the extent to which different types of PSS have the capacity to reduce greenhouse gas emissions across multiple product categories. Our study shows that significant reductions in climatic emissions are possible, but PSS are in many cases associated with more modest reductions and, in some cases, increased emissions. Further, we observe no clear differences in climatic impacts according to the type of PSS model that is deployed. Rather, differences in climatic impact are influenced by factors such as production and design alongside use-phase impacts and contextual factors such as transportation and the energy mix. The study argues that further research is needed to establish a more robust baseline upon which to draw conclusions regarding the sources of climatic impacts, and outlines fruitful ways for companies to tackle the complexities of climatic emissions that are beyond their control. • In some cases, product service systems can reduce climatic impacts by up to 80%. • In other cases, climatic impacts increase compared to traditional product sales. • Climatic impacts are influenced by use intensity, transportation and production. • Other contextual factors such as the energy mix play a role. • More quantitative assessments are needed with less reliance on estimations. [ABSTRACT FROM AUTHOR]

In the current global landscape, food loss and waste (FLW) persist as a significant challenge, accounting for one-third of global food production and directly impacting 700 million individuals. Beyond its social ramifications, FLW incurs substantial economic costs and raises environmental and ethical concerns. To address this issue, our paper presents a comprehensive systematic overview within operations management, offering a framework that delineates diverse supply chain types, defines FLW, examines its multifaceted impacts, and outlines reduction strategies. Emphasizing a holistic perspective, we utilize various case study approaches to shed light on the global implications of FLW, aiming to contribute to ongoing research endeavors. In exploring the depth of FLW, we build upon two foundational premises: the actions taken by rational actors towards FLW reduction hinge on the balance between benefits and costs, guiding policy formulation. Effective policies necessitate a thorough understanding of synergies, potential unintended consequences and trade-offs. The absence of comprehensive information on FLW leads to both excessive and insufficient rates of FLW. Justifying public intervention lies in its potential to enhance food security, efficiency, and environmental sustainability, albeit quantifying these effects poses challenges. Our overview paper identifies key challenges in FLW policies, encompassing measurement, quantification, interdependencies within the and trade-offs, and value chain in food policy objectives. Despite these challenges, the paper guides the enhancement of loss measurement for targeted interventions, emphasizing investments in policies that foster a conducive business environment and government-led initiatives in awareness and incentive modification. The study also sheds light on crucial gaps in knowledge, including data deficiencies and variability in estimates, calling for standardized data collection methodologies and targeted research initiatives. By addressing these gaps and emphasizing collaborative efforts, this research contributes to a nuanced understanding of FLW, advocating for improved strategies to tackle this multifaceted issue. • Comprehensive Ops Framework: Presents systematic framework for FLW reduction in supply chains. • Multifaceted FLW Impacts: Explores economic, environmental, and social impacts. • Urgent Data Gaps: Emphasizes need for current data on FLW, especially in BRICS nations. • Culture-Specific Solutions: Highlights importance of tailored innovations for waste reduction. • Climate Nexus and Renewable Energy Integration: Explores FLW, climate change, and renewable energy synergy for sustainable, low-carbon paths. [ABSTRACT FROM AUTHOR]

One of the technological responses to concern about the healthiness and sustainability of red meat consumption as well as growing global food insecurity has been the development of plant-based meats. While still niche industries, plant-based meats are increasing in diversity and visibility and are often accompanied by scientific claims about their potential contribution to sustainability, health and nutrition. In this paper we analyse these claims from the perspective of critical metrology, looking not only at the state of knowledge about plant- and animal-based beef but also how knowledge is being produced. Such research is vital in understanding not only what is known about a topic but also the limitations of that knowledge in terms of influences and gaps, to shape how research can be done better. The research is based on a scoping review of scientific papers that compare the sustainability and nutritional properties of plant- and animal-based beef, with a particular focus on the Australian context. Our analysis shows that there are some points of consensus, such as plant-based beef having lower greenhouse gas emissions than animal-based beef and that plant-based burgers have lower total fat and saturated fat than animal-based burgers. However, we also find points of difference due to variability in production systems, products and approaches to measurement. We discuss how a metrological regime is forming that bears the imprint and interests of the industries involved, influencing the metrics and geographies that are studied and creating critical absences in understanding. [ABSTRACT FROM AUTHOR]

Given the increasingly severe challenges of global climate change and sustainable development, accurate prediction of daily carbon dioxide (CO 2) emissions has become crucial. However, current research on real-time daily forecasts remains relatively scarce, often limited to annual predictions and point estimates. This paper proposes an innovative integrated model, based on quantile regression and Attention-Bidirectional Long Short-Term Memory (BILSTM), specifically designed for probabilistic prediction of daily carbon emissions. Testing the model on daily carbon emission data from major carbon-emitting countries including China, the United States, India, Russia, and Italy has demonstrated its superior performance across various metrics, including mean squared error (MSE), mean absolute error (MAE), coefficient of determination (R2), and normalized average width of prediction intervals (PINAW), compared to other benchmark models. This achievement not only highlights the model's effectiveness in predicting daily carbon emissions but also provides policymakers with a powerful tool for real-time monitoring and assessment of carbon emissions. Furthermore , the application of probabilistic forecasting methods enables decision-makers to gain a more comprehensive understanding of the potential range of future carbon emissions, providing strong support for the formulation of targeted policies. [ABSTRACT FROM AUTHOR]

Roads play a vital role in transportation systems, and their construction and maintenance expenses are high. Those reasons make crucial the examination of factors that accelerate road deterioration and those factors' negative impacts on societies. Climatic-related elements, especially temperature and precipitation, significantly affect the quality and lifespans of roads. The Intergovernmental Panel on Climate Change has reported that increasing greenhouse gas (GHG) emissions is causing changes in climate and that the rate of change has accelerated during the past several decades. To assess the impacts of changing climatic parameters on flexible-pavement performance, this study used 32 climate models to evaluate the performance of interstate, primary, and secondary roads across 11 diverse locations with varying traffic and climatic conditions. The study's findings reveal that changing climate exacerbates pavement distresses, leading to reduced pavement lifespans and increased numbers of reconstruction projects, which in turn raise demands for materials and equipment and contribute to higher GHG emissions. The effects of changing climate and changing climate's associated economic and environmental costs make the application of various engineering solutions to enhance pavement resilience essential, as described in this paper, in the absence of comprehensive emissions reduction strategies. [Display omitted] [ABSTRACT FROM AUTHOR]

Soil erosion changes become more unclear in the future due to climate change and increased human activity. However, the spatiotemporal heterogeneity in the driving effects of key factors on soil erosion remains inadequately understood on the northern slope of the Tianshan Mountains (NSTM). In this paper, the spatiotemporal evolution of soil erosion on the NSTM was evaluated in the historical period (2000–2015) by the Revised Universal Soil Loss Equation (RUSLE) model. Subsequently, the FLUS-CMIP6-RUSLE model was employed to predict soil erosion in the future period (2030–2050). Then, the GTWR model was used to dissect the spatiotemporal heterogeneity in the driving effects of precipitation and vegetation. The results indicated that soil erosion on the NSTM fluctuated from 2000 to 2015, increasing by 1.77 t ha −1 yr −1. Soil erosion areas mainly occurred in Changji City, Fukang City, Hutubi County, Mulei County, Qitai County, and Turpan City. The soil erosion modulus in 2030, 2040, and 2050 under different climate scenarios will be 26.56,28.83, and 37.49 t ha −1 yr −1, respectively. The spatial pattern of soil erosion is similar to the historical period. Precipitation was the main factor intensifying soil erosion in the eastern and western counties from 2000 to 2020, while the soil erosion change in central counties was affected by vegetation. In the future, soil erosion change in the counties (i.e., Karamay, Yili, Tacheng, Shihezi, Manas, Qitai, and Mulei) will be driven by precipitation. The vegetation will be the main driver of soil erosion change in central and eastern counties (i.e., Urumqi, Turpan, Fukang City, Jimsar County, and Changji City). This study firstly attempts to explore the spatiotemporal heterogeneity in the driving effects of precipitation and vegetation using Spatial-Temporal Geographically Weighted Regression (GTWR) in urban agglomerations of NSTM. It is meaningful to explore erosion-prone regions and to implement rational soil conservation measures in the study region and similar regions in the world. [Display omitted] • A coupled model was constructed to predict soil erosion for future scenarios on NSTM. • The spatiotemporal heterogeneity in effects of precipitation and vegetation were explored using GTWR. • Precipitation exacerbated soil erosion in eastern and western counties (2000 - 2020); central counties more by vegetation. • Vegetation to be key factor driving soil erosion change in Turpan; Wujiaqv and Mulei by precipitation (2030 - 2050). [ABSTRACT FROM AUTHOR]

Circular actions cannot be considered sustainable if their financial benefits are not demonstrated. While the environmental benefits of the circular economy have been widely studied, sustainable development from a financial point of view has been much less studied. In this paper we assess the financial benefits of circular innovations applied in the fashion industry that have been previously assessed as sustainable using the Life Cycle Assessment. The focus is on two innovative processes such as salt recovery and tannin baths reuse that reuse water, chemicals and raw materials in an Italian small company operating in the tanning industry. A cost benefit analysis was carried to evaluate the net contribution of these actions to the operating margin. Then we model a forward-looking cash flow projection in order to determine the fundamental value of circular investments. Through these practices, the company achieved an increase in operating profitability above 30% and the 10-year value of the salt recovery is 159,061.40 euros, while the reused tanning water equals just over one million euros. The results show unexpected and strong financial benefits that can leverage similar initiatives that would advance resource equity and finally promote a real and convenient industrial dedication to environmental guardianship. [ABSTRACT FROM AUTHOR]

Radiative cooling coating technology is gaining increasing attention in the context of mitigating urban heat island and tackling global climate change. This paper is concerned with the development of an inorganic geopolymer-based radiative cooling coating using red mud, incorporating varying sizes of TiO 2 and hollow glass beads. The developed colored coating demonstrates its radiative cooling capability in reducing the surface temperature by harnessing the potential of red mud. The physico-chemical properties, surface morphology, and element distribution of the coating were characterized by XRD, FTIR, TG-DAT, SEM and EDS. The coating exhibited lower UV (0.0844) and visible reflectance (0.5275) but high NIR reflectance (0.7536), as well as high infrared emissivity of 0.9455, enabling a red color with a CIE value of L* = 74.56, a* = 9.55, and b* = 11.98, and a maximum temperature reduction of 7.3 °C under the climate of Hong Kong. Additionally, the skid resistance, abrasive resistance and adhesion strength of the proposed coating could meet the requirements of standards, indicating a great potential for footway applications. [ABSTRACT FROM AUTHOR]

Low-carbon technology has become the focus of addressing global climate challenges but is facing the supply restriction of critical high-tech metals. Recycling has become a powerful measure to solve this issue. In the paper, a comprehensive recycling potential index (RPI) is constructed to evaluate the recycling potential of high-tech metals for low-carbon energy technologies in China from 2020 to 2050, and development strategies are proposed based on the evaluation results. The results indicate that the future trends of recycling potential show four evolution modes – either reaching or rapidly rising to a high level, increasing to the middle and middle-high level, unsteadily staying at the low and middle-low level, or remaining at a low and continuously decreasing level. According to the evolution trend, different strategies, including key development, reserves, digestion, and transfer, should be adopted in different stages. Co, Li, Dy, Nd, Tb, and Eu should be the focus of technology, funds and policy from both the government and enterprises due to their high recycling potential in the long term. Moreover, measures should be taken to encourage recycling and mitigate the supply risk of high-tech metals for low-carbon energy technologies, including tracking the development of low-carbon energy technologies, adjusting the list of critical high-tech metals, promoting recycling technology, and exploring substitute resources. [Display omitted] • A comprehensive recycling potential index is constructed to evaluate the recycling potential of high-tech metals. • The future trends of recycling potential of high-tech metals show four evolution modes. • Strategies like key development, reserves, digestion, and transfer should be adopted in different stages. [ABSTRACT FROM AUTHOR]

Pastureland maintenance is seen as a land-based measure to reduce dependency on feed concentrates and mitigate greenhouse gas (GHG) emissions from livestock production in the EU, while providing other ecosystems services. This paper assesses potential market-mediated impacts, including global Land Use Change (LUC) and GHG emissions, from increased subsidies to pasture-based livestock production in the EU. A tax recycling strategy (TRS) is simulated against a baseline up to 2030 under the shared socioeconomic pathway 2 (SSP2). This implies a budget-neutral increase in the level of pasture subsidies in individual Member States, as land subsidies for other cropping activities decrease. We employ the computable general equilibrium (CGE) model GTAP in its recursive-dynamic version, GTAP-RDEM, extended with the Multi-Regional Input-Output (MRIO) database FABIO to disaggregate agri-food sectors from 21 to 31. This approach allows considering price- and income-dependent feedbacks when assessing long-run changes in the global economy, improving the sectoral resolution relative to GTAP v10. The policy increases pastureland areas and cattle production in almost all EU Member States, whereas cropland and crop production decrease, causing significant changes across EU agri-food markets. Crop prices increase, leading to the reduced output of intensive animal production sectors, mainly pig and poultry. Cropland areas decrease and most EU countries increase imports of grain, oilseeds, and cakes, essentially soybean cake from Brazil and North America. While GHG emissions decrease in those EU countries where pasturelands expand mainly at the cost of croplands, GHG emissions increase in those countries where pastureland expansion comes with forest loss. As a result, net GHG emissions increase in the EU-27 in 2030 (+2.49 Mt CO 2 -eq). Emissions from LUC in major non-EU grain- and oilseed-exporting countries increase, e.g., by 102.52 Mt CO 2 -eq in Brazil and by 129.17 Mt CO 2 -eq in North America. The simulated policy shows that promoting extensive livestock per se does not meet the objectives of the Common Agricultural Policy and the EU Green Deal. The TRS should be complemented with policies to foster crop diversification and promote the use of domestic feed sources (e.g., legumes) to effectively ensure feed self-sufficiency and that extensive cattle production in the EU does not lead to deforestation in carbon-rich countries. [ABSTRACT FROM AUTHOR]

Climate change led an increase in the frequency of severe droughts, the effects of which are exacerbated by a lack of water storage. Despite increasing research on global-scale total water storage (TWS) change and drought prediction, basin-scale long-term hydrological drought, TWS change, and El Nino–Southern Oscillation (ENSO) influence in East Africa (EA) remain unexplored. In this paper, we used multiple approaches, of ensemble machine learning (ML) and weighted averaging, to conduct a basin-scale exploratory analysis of future hydrological drought and TWS change for the period 2025–2099. Climate change will affect future hydrological conditions in the basins, with maximum severity values of −90.3, −726.6, and −2567.7 Gt in the Tana, Turkana, and Victoria basins, respectively, under RCP6.0. Similarly, we found maximum severities of −187.5 and −277.7 Gt in the Abaya-Chamo and Tanganyika basins, respectively, under RCP 2.6. The most severe El Nino drought and exceptional La Nina conditions in the basins were found under both RCP scenarios. To ensure future water security in EA, sustainable water resource management strategies that can mitigate the impacts of extreme climate events in the future are urgently needed. [ABSTRACT FROM AUTHOR]

The changes in energy use and energy-mix are important in ensuring the implementation of the sustainability goals, especially those related to the climate change. Even though there have been attempts to analyse the energy-related greenhouse gas (GHG) emission in the European Union, there is still a lack of research that considers structural change, fossil energy consumption, and energy-mix simultaneously. In this context, the present paper addresses the growth in energy-related greenhouse gas (GHG) emissions in the European Union (EU) agriculture. The index decomposition analysis based on the logarithmic mean Divisia index is implemented over the period of 2004–2021. The change in the GHG intensity at the EU level is factorized with respect to the structural effect and those related to the energy intensity, the share of the fossil energy, and carbon factor for the fossil energy. The results suggest that a decline in the energy intensity appeared as the main driver pushing the energy-related GHG emission intensity down in the EU agriculture. This calls for further actions directed towards the increase of the use of renewables. [ABSTRACT FROM AUTHOR]

In recent years, the negative consequences of climate change have gradually spread to the real economy sector, which affects enterprise output, increases enterprise costs, and thus inhibits the sustainable development of enterprises. Still, it is not clear whether corporate resource misallocation will reinforce the effect. Therefore, using the data of A-share listed companies in 2011–2021, this paper investigates the impact of climate change on corporate environmental, social, and governance (ESG) performance. According to empirical results, climate change significantly inhibits corporate ESG performance. It also found that continuously eliminating internal and external resource misallocation helps alleviate the adverse effects of climate change on ESG performance. Furthermore, compared with enterprises in non-resource-based cities, climate change will significantly improve corporate ESG performance in resource-based cities, indicating that the adaptive behavior caused by climate change has partially broken the resource curse phenomenon. Additionally, mature and large-scale enterprises mitigate the negative effects better, and external pressure from the public environmental and analysts' attention can motivate companies to improve their ESG performance. The research enriches the research on the impact of climate change on corporate ESG performance and provides a reference basis for enterprises to cope with climate risks. [ABSTRACT FROM AUTHOR]

In 2022, Saudi Arabia's anthropogenic greenhouse gas emissions amounted to 810 million tons of CO 2 e. The country has pledged to cut its emissions by 278 million tons of CO 2 e per year by 2030. This paper contributes a modeling view on the climate-related effects of various energy policies on the Saudi energy system. We use an energy system model designed to represent seven sectors in the Saudi economy. In addition to a baseline, which entails the continuation of current domestic policies, we look at a scenario that incorporates some of the plans announced by the Saudi government. We also examine the baseline scenario with a cap on total CO 2 emissions equal to those exhibited with the announced plans. The model then makes the necessary decisions to abate CO 2. We find that the energy system contributes 130 million tons of CO 2 e to the nationally determined contribution amount in 2030. Also, a non-prescriptive scenario that caps energy-system CO 2 emissions produces the same emissions reductions as the announced plans while lowering the present cost by 2030 by $70 billion. The corresponding implicit marginal abatement cost of CO 2 approaches 35 $/tonCO 2 by 2045. This cost would displace around half of crude and fuel oil use in the Saudi energy system. • Saudi Arabia plans to cut annual greenhouse gas emissions by 278 million tonsCO 2 e. • We use a multi-sector model built from the ground up for Saudi Arabia. • The energy system can contribute 130 million tons of CO 2 e in reductions in 2030. • We find a scenario that achieves GHG abatement at a lower cost than official plans. • The marginal value attributed to CO 2 approaches 35 $ per tonCO 2 by 2045. [ABSTRACT FROM AUTHOR]

The energy crisis caused by climate change is the most significant challenge of the 21st century. Single-objective and multi-objective optimization studies for buildings often only consider the building itself, without considering the impacts of climate change. However, in the future, energy-efficient design and appropriate operating parameters will be crucial considerations in the face of global climate change. This paper aims to discuss the impact of climate change in the humid-hot region over the past 60 years on the energy consumption of office buildings and propose countermeasures. Firstly, the meteorological data of Guangzhou from 1960 to 2020 is statistically analyzed, and four typical meteorological years and corresponding air conditioning design days are established. Secondly, Energyplus is used to simulate the building's energy consumption, and the energy consumption factors are analyzed for sensitivity using jEplus. Finally, a multi-objective optimization is performed using jEPlus + EA with the Non-dominated Sorting Genetic Algorithm (NSGA-II). The results found that climate change led to a significant increase in the duration of high outdoor temperatures during summer. Specifically, the daily dry-bulb temperature for air conditioning design increased by 0.4–0.7 °C, and due to climate change, the energy consumption of the office building increased by about 4.6 %. The main factor affecting the cooling energy consumption in summer was the indoor cooling set point (8.29%–30%), infiltration air volume (1.0%–8.6%), fresh air volume (3.2%–16.06%), the glazing solar transmission rate (1.25%–9.0%), building orientation (0%–1.43%), and relatively small influence of envelope insulation performance. The operation scheme determined by multi-objective optimization can reduce the cooling energy consumption of the building by 10.6%–16.8%, which can mitigate the rise in energy consumption resulting from climate change to a greater extent. [Display omitted] • Discuss the impact of climate change over the past 60 years on the energy consumption of office buildings. • There was a significant increase in the duration of high outdoor temperatures during the summer. • Multi-objective optimization is performed using jEPlus + EA. • Climate change caused energy consumption to increase by about 4.6 %. • Optimal solutions can reduce the cooling energy consumption of the building by 10.6%–16.8%. [ABSTRACT FROM AUTHOR]

To mitigate climate change and achieve sustainable development, Chinese governments have introduced "1+N" "dual-carbon" policy system aimed at reducing CO 2 emissions, transforming energy structures and controlling pollution. An effective policy mix and synergy is crucial for achieving the emission reduction targets and for ensuring the effectiveness of the policies, and it is therefore of great practical importance to provide a pathway for policy synergy based on assessing policy effectiveness. This paper selects three policies, namely the carbon Emission Trading System (ETS), Coal Control and Clean Utilization (CCCU), and Green Financial Reform and Innovation Pilot Zone (GFPZ), sets up ten scenarios, adopts difference-in-differences (DID) models to evaluate the impact, and give a pathway for policy synergy. The results show that ETS, CCCU, and GFPZ policies have significant positive effects on carbon emission reduction, energy structure transformation, and industrial environmental pollution control, respectively; CCCU has synergistic effects with ETS and GFPZ policies in controlling coal consumption and increasing the completion of industrial pollution control investments, respectively; while GFPZ policies have conflicting effects with CCCU and ETS in reducing carbon emissions and coal consumption, the GFPZ policy has conflicting effects with CCCU and ETS in reducing carbon emissions and controlling coal consumption. Finally, the study proposes a phased policy support system around carbon emission reduction in the power generation industry, energy structure transformation, and industrial environmental pollution control before 2030 and from 2030 to 2060. [ABSTRACT FROM AUTHOR]

Residential buildings have a substantial impact on global environmental impacts. In this paper we present a model that assesses impacts from materials (embodied impacts) as well as from heating (operational impacts) for all residential buildings in Switzerland. Our model builds on an existing high-resolution spatio-temporal building stock model, which estimates the space heating demand of buildings, based on building property and site data. In this work we additionally include the impacts of materials extraction, production, transportation, and disposal of building components (floors, roofs, walls, ceilings and windows). Our model comes with a site- and building-specific default parametrization for all buildings, but it is developed as a tool that allows architects and planners to adapt building and site data with specific information to increase the accuracy of the environmental assessment of the current buildings and future building-management scenarios. We applied the model to ten Swiss buildings and assessed a selection of building-management scenarios to illustrate the application of the tool. The results show that our model estimates fairly accurate values of thermal and ventilation heat transmittance, operational space heating demand, and operational and embodied climate-change impacts for the considered buildings. The detailed modeling results for the ten case study buildings outperformed the simplified version of the model with generic default values for material building composition (using age-grouped building archetypes), emphasizing the importance of adding detailed material information in building life cycle assessments. Therefore, a focus should be placed on obtaining accurate material inventories of buildings in future research. The here-developed model allows for integration of such detailed material inventories, overwriting the provided default values. • Tool provides assessment of embodied and operational impacts of the entire Swiss residential building stock. • Tool estimates close to accurate space heating demands of buildings. • Tool is equipped with generic default building and site data. • Tool allows overwriting generic values with data inputs from building stakeholders, which is demonstrated in the case study of 10 buildings. [ABSTRACT FROM AUTHOR]

The promotion of renewable energy nowadays is particularly important not only to mitigate the climate change but also to increase the energy independence. Thus, the aim of this paper is to analyse the impacts of attitudes and perception of the war in Ukraine and environmental aspects on selection of green electricity in Lithuania. The survey analysis conducted in early 2023 showed that only 35% of respondents have selected green electricity. Analysis of the main determinants of green electricity selection showed that attitudes towards energy consumption together with the perception of renewable energy environmental impacts (B = 0.13, p < 0.01), as well as attitudes towards the war impact together with the perception of the renewable energy role in solving energy crisis (B = 0.09, p < 0.01), positively and statistically significantly influenced selection of green electricity. Meanwhile, the interaction of attitudes towards the war impact and the perception of the renewable energy role in achieving energy independence insignificantly (B = −0.05, p = 0.06) determined selection of green electricity. From the socio-demographic variables, only age (B = −0.02, p = 0.003) and gender (B = 0.36; p < 0.01) had a significant effect on this behaviour. Thus, this study gives an additional insight for policymakers and green electricity suppliers on how to increase green electricity selection in the context of the war in Ukraine. [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]