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...

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...

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...

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...

This paper is an overview of how insurance instruments could be used in Indonesia to improve disaster risk finance (the arrangements for managing the financial consequences of disaster). We review the policy and research literature to describe the existing arrangements in Indonesia for preparing...

Prevention and insurance are studied in an urban model with spatial heterogeneity due not only to commuting transport costs but also to natural disaster risks. Costly insurance and charity donation both lead to low insurance purchase. While the former leads to high prevention, the latter leads...

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...

Flood damage assessments are often based on Stage-Damage Curve (SDC) models that estimate economic damage as a function of flood characteristics, typically flood depths, and land use. SDCs are developed through site-specific analysis but rarely adjusted to economic circumstances in areas to...

This paper reviews the literature on the macroeconomic impact of natural disasters and presents the IMF's role in assisting countries coping with natural catastrophes. Focusing on seven country cases, the paper describes the emergency financing, policy support, and technical assistance provided...