Flooding is among the costliest natural disasters in the United States. Although the federal government provides floodplain boundary maps and subsidizes insurance, demand remains extremely low. This paper assembles the most comprehensive set of files ever compiled on flood risk and insurance to...

Climate change adaptation efforts are heavily dependent on a country's fiscal capacity and the associated costs of undertaking adaptation policies. The current accumulation of high debt levels in emerging and low-income developing countries, which are disproportionately affected by climate...

Climate change related risks impact and challenge the private sector in many different ways. This also applies to risk drivers like a companies' reputation and a changing consumer behavior. Since significant risk drivers for companies differ just as much as companies themselves, a sector...

We investigate carbon risk in global equity prices. We develop a measure of carbon risk using industry standard databases and study return differences between brown and green firms. We observe two opposing effects: Brown firms are associated with higher average returns, while decreases in the...

To deal with the so-called transition risk implied by climate change, investment banks are asked to produced scenario. We question this methodology and try to trace back the theoretical foundation of such a recommandation. We conclude by exploring other ways to deal with transition risk,...

We conduct a systematic literature review on environmental and climate related risk management in the financial sector. The systematic literature review identified a total of 36 relevant articles. A formal coding leads to the aggregation and classification of papers to three main categories that...

This article presents a stochastic asset pricing model for firm-level climate risk assessment. Specifically, we extend Heston model to incorporate climate-related risk drivers. We formulate the cost of carbon reduction and equity green premium, thereby adjusting the diffusion process of equity...

In response to the growing threat of climate change, the insurance industry has made significant investments in modelling and quantifying physical climate risks. However, the emerging risk of climate litigation has proven particularly difficult to model. In 2015 Mark Carney, then-Governor of the...

We provide an initial framework regarding priorities for government programs to reduce the natural-disaster vulnerability of farm households in the Philippines. We begin with the likelihood that climate change will increase the probability of flooding, since rainfall is expected to both increase...