Climate-Related Financial Stability Risks for the United States: Methods and Applications.

The article "Climate-Related Financial Stability Risks for the United States: Methods and Applications" examines various models used to study climate-related financial stability risks (CRFSRs) in the U.S. It discusses the strengths and weaknesses of ten types of models and their suitability for assessing CRFSRs, noting a high level of uncertainty in current assessments. The text also delves into the methodology of natural capital analysis, emphasizing the importance of measuring firms' exposure to natural resource degradation and the impacts on business models. It concludes by suggesting ways to combine existing methodologies for a more comprehensive understanding of climate risks and vulnerabilities, highlighting the need for further research in integrating climate-related risks into modeling frameworks. [Extracted from the article]