Climate change has become a pressing issue that requires comprehensive and scientific understanding of its impact on the economy. Policymakers seek answers to the questions of how climate change affects economic growth, inflation, and the financial system. To design targeted policies, it is...

I model the effects of climate change on a real business cycle model economy subjected to climate moderated disasters and the possibility of a worldwide cataclysm that destroys the economy. I find that the rise of greenhouse gas production in the economy leads to more frequent and more...

Climate risk brings about a new type of financial risk that standard approaches to risk management are not adequate to handle. We develop a model that allows to compute the valuation adjustment of corporate and sovereign bonds conditioned to climate transition risk, based on available...