Literature on climate change and extreme events has found conflicting and often weak results on the evolution of economic damages related to natural disasters, although climate change is likely to bring about an increase in their magnitude (Van Aalst, 2006; IPCC, 2007, 2012). These studies usually...

This paper deals with the effect of (i) damage experience from extreme weather events and (ii) expectations concerning future climate change on subjective wellbeing (SWB). We use data of a large representative survey amongst German households. The effect of experienced weather events on SWB of...

We document that European banks charge higher interest rates on loans granted to small and medium-sized firms located in areas at high risk of flooding. At 6 basis points, the average risk premium does not adequately reflect the deterioration of loan performance in the aftermath of flood...

There are concerns that climate-related physical and political risks are not yet properly reflected in asset prices. To address these concerns, we develop a dynamic asset pricing framework with rare disasters related to climate change. The novelty of this paper lies in linking carbon emissions...

We propose an integrated methodology to evaluate the four possible socio-economic costs namely direct/indirect and tangible/intangible costs due to adverse consequences of flood. Although SERRA is based on full monetization of costs and benefits of risk, it can allow for other methods of...

A conceptual framework integrating different disciplines has been developed to comprehensively evaluate the benefits of risk prevention. Three main innovations are proposed with regards to the state of the art: (1) to include the social capacities of reducing risk, (2) to go beyond the...

Estimates of future damages from climate change in coastal areas are of growing interest for climate change research and policy-making. A newly-developed methodology is applied to estimate total insured coastal damages with climate change for the period 2025-2085 in New York State, USA. Total...

We investigate the effect of climate change, through natural disasters, on corporate borrowing costs. Using novel data, we construct granular measures of borrowers’ exposure to various natural disasters. We disentangle the effect of lenders updating their believes about the future severity and...

Banks price physical climate change-related risks after observing natural disasters linked to climate change. We isolate this updating process by identifying loans to borrowers at risk of, but not-directly affected by, climate-change related disasters. Loan spreads for these borrowers spike in...

We investigate how corporate loan costs are affected by climate change-related natural disasters. We construct granular measures of borrowers’ exposure to natural disasters and then disentangle the direct effects of disasters from the effects of lenders updating their beliefs about the impact...