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The quantitative analysis of the economic impact of climate risk is an effective means of understanding and taking reasonable preventative steps in relation to the climate-related economic crisis. This paper takes panel data from China's 31 provinces for 2009 to 2021, combined with a regulating intermediary effect model, to determine the climate risk faced in China and its influence mechanism on high-quality economic development, in an attempt to determine how to adjust the path. The results show that, first, when using a different regression model, we see that climate risks pose a significantly inhibiting effect on high-quality economic development in China. Secondly, when the climate risk increases by 1%, high-quality economic development drops by 0.0115%. When the climate risk increases by 1%, this leads to a 14.9672% increase in the likelihood of natural disasters, causing high-quality economic development to be indirectly reduced by 0.1300%. Thirdly, green innovation has a multidimensional effect; it can both directly and indirectly impact the negative effects of inhibition, and indirect adjustment has a greater effect than direct adjustment. Such regulation has a greater effect on the input than on the output. Therefore, we should seek to more accurately understand the dangers of climate risk, effectively improve the five aspects of development, and strengthen the input of green innovation and thus the output of high-quality economic development in China. [ABSTRACT FROM AUTHOR]

There is increasing pressure on organisations and countries to manage the financial risks associated with climate change. This paper summarises research on climate change, credit risk and the associated losses, and specifically identifies methods that could contribute to quantifying the causal relationships between climate change and credit risk. We conducted a bibliometric analysis using the Web of Science database to analyse 3138 documents that investigated climate change and credit risk. The key results reveal that climate change has a quantifiable effect on credit risk, and that the most affected industries or sectors are energy, transportation/mobility, agriculture and food, manufacturing, and construction. The prominent methods to quantify causal relationships between climate change and credit risk are regression models, but these are mostly used in preliminary and testing stages. Distance to default and credit risk are the main areas of focus when quantifying climate change and credit risk. Banks are the main type of organisation that have sought to quantify the causal relationship. We identify a research agenda to quantify these causal relationships. [ABSTRACT FROM AUTHOR]

This paper examines the integration of climate risks into structural credit risk models. We focus on applications in housing finance and argue that mortgage defaults due to climate disasters have different statistical features than default due to household-specific reasons. We propose two models incorporating climate risk based on two separate default definitions. The first focuses on default as a response to a decrease in home value, and the second defines default as a consequence of missed mortgage payments. Using mortgage performance data during Hurricane Harvey, we conduct an empirical study whose results suggest that climate events are potentially another source of undiversifiable credit risk affecting homeowners' ability to make contractual monthly payments. We also show that incorporating this climate-specific default process may capture additional uncertainty in default probability assessments. [ABSTRACT FROM AUTHOR]

This paper explores the strategies and practices of capturing climate risk premia for venture capital (VC) fund managers and entrepreneurs in the private cleantech sector. It also examines the impact of the feed-in tariffs (FITs) policy on the management of cleantech investments. It is shown that a longer investment period, less investment capital in cleantech investment management strategies, and optimistic climate risk management practices will help investors to better capture climate risk premia. In fact, the FITs policy will give rise to VC fund managers and entrepreneurs having a positive view regarding the prospects of the cleantech sector, motivating them to make long-term investments. Furthermore, it is shown that the greater the impact of the FITs policy, the greater the climate risk premia to be captured. In addition, the captured climate risk premia are greater in weaker economic conditions and in times of increased uncertainty with regard to product demand. [ABSTRACT FROM AUTHOR]

In this paper, we test the impact of weather-related disasters on the individual firm's equity financing cost based on Chinese listed companies in the mining industry. We collect data from the China Meteorological Disaster Yearbook and CSMAR database. Using direct economic loss associated with extreme weather-related events to quantitate meteorological disasters and regression analysis, we find that weather-related disasters significantly increase a firm's equity financing cost. This result is robust compared to alternative measurements of equity financing cost, such as the two-way fixed effect model, severe disaster dummy variable, and instrumental variable regression. Further research shows that cash holdings and managerial ability can mitigate the impact of meteorological disasters on the equity financing cost. Our study provides significant implications for firms and policymakers. Firms and policymakers should carefully evaluate the risk of weather-related disasters. [ABSTRACT FROM AUTHOR]

The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfall shocks, influence commercial input purchase decisions by smallholder farmers in contrasting geographic regions in Malawi, with a particular emphasis on fertilizer, agrochemicals, seed, and labor. The empirical approach integrates historical weather information, climate shock perceptions with a longitudinal household survey data set to model commercial input purchasing decisions using appropriate latent variable models. The findings suggest that exposure to recent rainfall shocks, especially droughts, stimulates commercial input purchasing across regions, especially in drier central and southern regions of Malawi. This result holds true for general input purchase decisions and for specific inputs such as agrochemicals, fertilizer, seed, and labor. Although drought shocks considerably increase the probability of acquiring inputs through purchase, they occasionally diminish the intensity of purchases. Both objective and subjective measures of lagged rainfall shocks are revealed as significant determinants of commercial input purchases across regions in Malawi. In addition to regional heterogeneity findings, further analysis shows that the relatively wealthier, male-headed families and those with access to information are more likely to invest in purchased inputs in response to drought shocks. Scaling up policies that remove demand- and supply-side barriers to smallholder farmers' access to commercial inputs from available markets is necessary for adaptation to rainfall shocks. [ABSTRACT FROM AUTHOR]

The aim of the paper is to identify groups of banks with similar environmental commitment, taking into account their direct environmental impact. The study, which employs the aggregation method, reveals that small banks with a relatively worse financial standing are characterised by the lowest level of disclosures within pro-ecological initiatives. At the same time, large international banks belong to clusters defined by the highest or the lowest disclosure rates. The above-mentioned phenomenon results from the dichotomy of integrating environmental policy into their strategies and business models. This study is the first comparative analysis of the extent to which all listed (and at the same time the biggest) banks operating in Poland have taken initiatives to reduce the negative environmental impact of their activities. [ABSTRACT FROM AUTHOR]

Following a copious and famous snowfall in Madrid city (Spain) and its surrounding area, the tree masses were analysed to assess the impact of this snowfall. In this way, this paper proposes an approach towards urban forest impact inventory mapping as a consequence of the snowfall of January 2021, and the subsequent atmospheric stability, which kept surface temperatures in Madrid close to −10 °C. The study has been carried out using snowfall data from 1920 to 2020 and images from the Sentinel, Landsat and MODIS satellites. The results obtained by means of image changes in the NDVI reveal a clear impact on the trees, with 11% of the winter vegetation cover of the municipality being affected. Especially significant has been the damage detected both in the forest areas in the city and in the parks, gardens or urban roads. [ABSTRACT FROM AUTHOR]

This research presents a new model for analyzing the effects of government policies on climatic disasters on financial markets. Using Fama–MacBeth rolling regressions and the construction of model-proposed risk factors, three major risk factors are found to be significant in explaining stock returns. First, there is the risk of climate disasters. Second, there is the risk of uncertainty regarding government actions. Third, there is the risk of government response to climatic disasters. Through the increase in the cost of capital from climate disasters and the uncertainty of government response, the future cost of capital is higher, leading to less investment and lower productivity. However, the government's actions to compensate for losses due to climate damage help offset the damages from disasters. This implies that the previous estimates of economic damages due to climate risk have been underestimated. This work adds to the literature by providing a fuller estimate of the economic implications of climate change. [ABSTRACT FROM AUTHOR]

Scenario analysis is a comprehensive approach to assess the impact of climate-related transition risk on businesses. Environmental, social, and governance (ESG) scores are popular tools with financial institutions (FI's) for green-scoring practices and since they characterise a company's performance from an ESG perspective, they have been criticised for enabling "greenwashing" when used within the context of climate risk. Commercially available ESG scores are also available for listed entities, while FI counterparties are often unlisted. This study develops a methodology for creating in-house environmental scores (E-scores), which are then used to effectively choose appropriate transition pathways to be used in company-specific forward-looking scenario analysis. Such scenario analysis can be used to forecast the company's financial position, including the cost of its greenhouse gas (GHG) emissions, and quantify the impact of transition climate risk on specified metrics. The choice of metrics depends on what the results of the analysis are used for. Two metrics are identified for being useful for risk management and credit decisions: future profitability and weighted average carbon intensity. Finally, the study demonstrates how this process can be implemented with a practical worked example, using only publicly available data. [ABSTRACT FROM AUTHOR]

Cities worldwide are facing varying degrees of ongoing threats closely tied to climate change. Research is emerging that addresses climate risks as a pressing issue, especially for vulnerable cities in the Global South; however, there is a significant lack of systematic and application-oriented research on ecosystem-based adaptation to urban climate change. This study uses Shenyang in Northeast China as a case study, employing multisource data and integrated methods to examine and depict the dynamics of urban ecosystem-based adaptation to climate change amid rapid urbanization. The results indicate a decline in capacity for climate change adaptation during the study period. A framework for mainstreaming ecosystem-based adaptation is proposed, identifying specific strategies for climate change mitigation and adaptation in urban policy and planning processes in Shenyang. It also has significance for other cities to draw lessons from. By linking urban ecosystem dynamics, the capacity for urban climate adaptation, and sustainable urban governance, this study bridges the gap between research and practice in urban climate change adaptation, and expands the contribution of geography-based interdisciplinary integration to urban resilience. More practically, it provides references for Shenyang in adapting to climate change and transitioning to sustainable development. [ABSTRACT FROM AUTHOR]

Climate change is already having a negative impact on many areas of human activity, affecting life globally. It is more urgent than ever to increase our adaptive capacity to respond to current and future climate change risks. Climate services refer to a specialized sector that encompasses both research and operational activities. This sector is primarily focused on interpreting and communicating knowledge and information about climate risks in a manner that is tailored to meet the specific needs of diverse user communities. Climate services offer a range of specialized outputs, including forecasts, assessments, and advisories, which enable users to make decisions that are based on an understanding of the potential impacts of climate change. The outputs of climate services are designed to help diverse user communities effectively manage risks and capitalize on opportunities arising from climate variability and change. An attempt is made to outline the fundamental elements of climate services and point out their contribution to various aspects of human activity, focusing on their essential role in the adaptability of the priority for action agricultural sector, which appears as considerably vulnerable to the change of considerably susceptible to climate conditions. This article is structured to answer basic questions about climate services in general and to show the specificities of climate services in the agricultural sector. [ABSTRACT FROM AUTHOR]

The aim of this work is to introduce an innovative methodology for performing risk attribution within a multifactor risk framework. We applied this analysis to the assessment of systemic, climate, and geopolitical risks relative to a representative sample of Eurozone banks between 2011 and 2022. Comparing the results to the output of a bivariate approach, we found that contemporaneous tail crises generate combined equity losses exceeding partial analysis estimates. We then attributed the combined risk to each factor and to the effect of their interaction by employing our proposed frequency-based approach. For our computations, we used multivariate GARCH, Monte Carlo simulations, and a suite of Eurozone-specific factors. Our results show that total combined risk is on average 18% higher than traditional systemic risk estimates, that climate risk more than doubled in our period of analysis, and that geopolitical risk surged to over 5% of total combined risk. Our climate risk estimate is in line with the results of the 2022 European Central Bank climate stress test, and our geopolitical risk measure shows a positive correlation with the GPRD and Threats index. [ABSTRACT FROM AUTHOR]

The objective of this paper is to model and study the impact of high temperature on mortality in Pakistan. For this purpose, we have used mortality and climate data consisting of maximum temperature, variation in monthly temperature, average rainfall, humidity, dewpoint, as well as average air pressure in the country over the period from 2000 to 2019. We have used the Generalized Linear Model with Quasi-Poisson link function to model the number of deaths in the country and to assess the impact of maximum temperature on mortality. We have found that the maximum temperature in the country has a significant impact on mortality. The number of deaths in Pakistan increases as the maximum temperature increases. We found that, as the maximum temperature increase beyond 30 °C, mortality increases significantly. Our results indicate that mortality increases by 27% when the maximum temperature in the country increases from medium category to a very high level. Similarly, the number of deaths in the country increases by 11% when the temperature increases from medium temperature to high level. Furthermore, our study found that when the maximum temperature in the country decreases from a medium level to a low level, the number of deaths in the country decreases by 23%. This study does not consider the impact of other factors on mortality, such as age, medical conditions, gender, geographical location, as well as variability of temperature across the country. [ABSTRACT FROM AUTHOR]

South Asia is the most vulnerable region in the context of global warming, climate change, and climate risk. Climate finance is the most useful tool for combating climate challenges worldwide. The study explores the present picture of climate finance in South Asian (SA) countries. The study uses multilateral development bank (MDB), Green Climate Fund (GCF), and Germanwatch supplied data from 2011 to 2021. Under the theoretical lens of institutional capacity development, the study attempts to correlate climate finance and climate risk. The study indicates an increasing trend of MBDs' and the GCF's climate finance in many countries worldwide. The study finds that MDBs' total global climate finance is USD 446,977 million, while the SA region has received USD 59,301 million since 2011. It also reports that MDBs provide 77% and 23% of the money to the mitigation and adaptation areas. Moreover, the study reports that, after COVID-19, MDBs substantially increased the amount of global climate financing, but this increase was not seen in the SA region. Our climate risk data indicate that most of the SA countries are highly long-term climate risky and lose, on average, 0.378% of GDP. The correlation matrix finds a negative and significant correlation between climate finance and long-term and yearly climate risk. The study identifies that the region's climate financing flow of money is not rationally distributed based on the short-run and long-run climate risks. The study presumes that more climate finance would be the most effective mechanism to mitigate climate risk. Therefore, SA region leadership drastically requires a holistic framework to address the prevailing climate problems and to ensure regional coordination and cooperation toward climate finance and policies. The research findings have significant implications for climate policy and climate finance. [ABSTRACT FROM AUTHOR]

Recent work attributing decadal regime changes in temperature to radiative forcing is extended to atmospheric moisture. Temperature, and specific and relative humidity (T, q, RH) from the HadISDH data set were analyzed for regime shifts using the bivariate test. Most shifts in q and T for global and northern hemisphere (NH), and tropical land occurred within a year of each other. Only one shift of q was recorded in the southern hemisphere (SH). RH increased in the NH in 1990–91 and decreased in a series of shifts from the late 1990s, while in the SH decreased from 2001. The tropics have remained neutral, shifting negative over land and positive over the ocean. The global decreases in 2001 and 2011 was −0.56%. Global RH from 32 climate models from the CMIP5 RCP4.5 archive all contained regime shifts but only 4 reached or exceeded the observed decreases by 2100, the earliest in 2056. Regime shifts in RH and fire danger over Australia are consistent with the SH decreases in RH, shifting within one year of global fire season length in 2002, showing that impacts are also being underestimated by current analyses. Methods for nonlinear attribution and the contributing processes for nonlinear change are discussed. These results show that developing a better understanding of nonlinear change in moisture-related climate risk is an urgent task. [ABSTRACT FROM AUTHOR]

In Pakistan, research on information and communication technologies-based agricultural information services (ICTbAIS) have gained significant attention owing to the overwhelming population of smallholder farmers (whose information needs are unable to be met by the conventional extension services) and the increasing incidence of climatic risk. This study is, therefore, conducted in the Punjab province of Pakistan (mixed cropping region) to explore farmers' use of ICTbAIS and understand the relationship between farmers' socio-economic attributes, risk perception, and choices of ICTbAIS. A sample of 480 farmers was drawn using a multistage sampling approach, and farmers were interviewed face-to-face. To analyze the dataset, a multivariate Probit (MVP) model was employed. The results show that Television (TV) and mobile-based advisory and mobile-based consultations appeared to be the most used ICTbAIS, followed by radio and internet-based advisory. The estimates of the MVP model showed that farmers' age, education, farmland, tenancy status, off-farm income, and climate risk perception are significant determinants of their choices of ICTbAIS. Based on our results, we suggest policymakers and extension agencies to improve the content of ICTbAIS and make efforts for the awareness and training of farmers regarding the use of contemporary ICTs. [ABSTRACT FROM AUTHOR]

The impact of climate change and related hazards such as floods, heatwaves, and sea level rise on human lives, cities, and their hinterlands depends not only on the nature of the hazard, but also on urban development, adaptation, and other socioeconomic processes that determine vulnerability and exposure. Spatial planning can reduce climate risk not just by influencing the exposure, but also by addressing social vulnerability. This requires that relevant information is available to planners and that plans are implemented and coordinated between sectors. This article is based on a research project in Thailand, particularly on the results of multi-sectoral workshops in the case study region of the Andaman Coast in southern Thailand, and draws upon climate risk, spatial planning, and systems thinking discourses. The article formulates recommendations for planning in the context of Thailand that are relevant for other rapidly growing and urbanizing regions. Among other conclusions, it suggests that systems thinking approaches and cross-sectoral strategies are ways to grasp the interdependencies between and within climate risk and spatial development challenges. [ABSTRACT FROM AUTHOR]

This study quantifies the air quality impact on population mortality from an actuarial perspective, considering implications to the industry through the application of findings. The study focuses on the increase in mortality from air quality changes due to extreme weather impacts. We conduct an empirical study using monthly Californian climate and mortality data from 1999 to 2019 to determine whether adding PM2.5 as a factor improves forecast excess mortality. Expected mortality is defined using the rolling five-year average of observed mortality for each county. We compared three statistical models, namely a Generalised Linear Model (GLM), a Generalised Additive Model (GAM), and an Extreme Gradient Boosting (XGB) regression model. We find including PM2.5 improves the performance of all three models and that the GAM performs the best in terms of predictive accuracy. Change points are also considered to determine whether significant events trigger changes in mortality over extended periods. Based on several identified change points, some wildfires trigger heightened excess mortality. [ABSTRACT FROM AUTHOR]

The Regional Organization for the Protection of the Marine Environment (ROPME) Sea Area (RSA) in the northern Indian Ocean, which comprises the Gulf, the Gulf of Oman and the northern Arabian Sea, already experiences naturally extreme environmental conditions and incorporates one of the world's warmest seas. There is growing evidence that climate change is already affecting the environmental conditions of the RSA, in areas including sea temperature, salinity, dissolved oxygen, pH, and sea level, which are set to continue changing over time. The cumulative impacts of these changes on coastal and marine ecosystems and dependent societies are less well documented, but are likely to be significant, especially in the context of other human stressors. This review represents the first regional synthesis of observed and predicted climate change impacts on marine and coastal ecosystems across the ROPME Sea Area and their implications for dependent societies. Climate-driven ecological changes include loss of coral reefs due to bleaching and the decline of fish populations, while socio-economic impacts include physical impacts from sea-level rise and cyclones, risk to commercial wild capture fisheries, disruption to desalination systems and loss of tourism. The compilation of this review is aimed to support the development of targeted adaptation actions and to direct future research within the RSA. [ABSTRACT FROM AUTHOR]

We use the COVID-19 pandemic period in 2020 as an exogenous shock event to assess in how far climate risks measured by carbon exposure have entered and established themselves in the valuation of global stocks. In addition to descriptive analyses, we conduct cross-sectional panel regressions to assess the influence of carbon intensity levels on return and risk characteristics during and after the shock period. Furthermore, a difference-in-differences model setup allows us to infer whether these influences were significantly different when comparing pre-shock, shock, and post-shock periods. We find that carbon intensity affected returns significantly and negatively during a time of high uncertainty. In fact, high-emitting stocks suffered significantly more compared to the pre-crisis period. However, they could make up for their additional losses in the recovery period. In line with their high-risk exposure towards stranded assets and climate policy uncertainty, carbon-intensive stocks face higher risk levels in more stable economic times, thus justifying a carbon premium. [ABSTRACT FROM AUTHOR]