Using a data set on climate risk constructed by Google BERT (AI) algorithm, fine-tuned by Kölbel et al. (2022), we … demonstrate that physical climate risk is materialized in US stock markets. This premium is positive, both statistically and … risk factors. We also find no consistent premium related to the climate transitional risk across different industries. The …

We empirically examine the link between the cost of sovereign borrowing and climate risk for 40 advanced and emerging … risk are important factors driving the cost of sovereign borrowing at the global level. Overall, we find that vulnerability … to the direct effects of climate change matter substantially more than climate risk resilience in terms of the …

This paper empirically examines the link between the cost of sovereign borrowing and climate risk for 40 advanced and … resilience to climate risk are important factors driving the cost of sovereign borrowing at the global level. Overall, we find … that vulnerability to the direct effects of climate change matter substantially more than climate risk resilience in terms …

that lead to these assets becoming stranded. Our result suggest that climate change implies a positive and increasing risk … risk. Transition risks lower substantially the participation of carbon intensive assets in the market portfolio, which …

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. …

We examine whether climate change news risk is priced in corporate bonds. We estimate bond covariance with climate … asset pricing implications of demand for bonds with high potential to hedge against climate risk. Moreover, when investors … are concerned about climate risk, they are willing to pay higher prices for bonds issued by firms with better …

significant negative relation. On average, the risk-adjusted annual future returns of stocks with low exposure to CPU are 6 ….5%–7.7% greater than the returns of stocks with high exposure. Low CPU-beta firms are value, green stocks with low crash risk, and … they are more closely aligned with Democrats. Conversely, high CPU-beta firms are growth, brown stocks with high crash risk …