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Impact assessment of climate disasters on China's financial stability: Evidence from China's provincial level.
- Source :
- Environmental Impact Assessment Review; May2024, Vol. 106, pN.PAG-N.PAG, 1p
- Publication Year :
- 2024
-
Abstract
- Taking China's provincial panel data from 2010 to 2020 as an example, this paper verifies that climate change, especially extreme climate change, can destabilize China's financial stability and explores the transmission path of climate risks with meteorological disaster losses as the channel variable. Our empirical results demonstrate that: (a) only after the extreme climate change breaks through a certain threshold, thus causing a significant impact on the financial system; (b) we cannot ignore the improvement of disaster prevention and reduction ability brought by the improvement of social and economic development level; (c) the impact of extreme climate change will spread to the financial system through the economic losses caused by meteorological disasters; (d) there is obvious regional heterogeneity in the spread of meteorological disaster losses to the financial system. Our results are robust to a wider battery of checks and have important policy implications. • This paper empirically tests the impact of climate change on financial stability. • Extreme climate change will damage China's financial stability. • The economic losses caused by climate disasters will spread to the finance. • The transmission of such losses has obvious regional heterogeneity. • This paper provides policy implication for coping with climate risks. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01959255
- Volume :
- 106
- Database :
- Supplemental Index
- Journal :
- Environmental Impact Assessment Review
- Publication Type :
- Academic Journal
- Accession number :
- 177353594
- Full Text :
- https://doi.org/10.1016/j.eiar.2024.107527