model with heterogeneous agents, we reveal the existence of an extreme weather risk premium in the cross-section of stock … risk factors from standard asset pricing models nor by firm characteristics. Our results reveal a novel link between … climate risk and firm value. …

This paper examines the impact of transition and physical climate risk on stock markets using, for the first time in … results suggest a positive impact of transition risk on stock returns and a negative one of physical risk, especially in the … short term. Further, while physical risk appears to have an immediate impact, transition risk is shown to affect stock …

foreseeable future. Climate risk is therefore increasingly recognized as an important factor by policy makers, the investment … to climate risk, and there is an increasing interest to understand the impact of climate risk on the value of commercial … mitigates the effects, an indication that lenders incorporate flood risk information in the underwriting process …