This paper examines the impact of transition and physical climate risk on stock markets using, for the first time in this context, the annual CCPI index calculated by Germanwatch as well as its components (in addition to a wide range of other indices) for 48 countries from 2007 to 2023....

This study provides new evidence on the impact of climate physical risk (as measured by the Global Climate Risk Index (CRI) from Germanwatch) on stock market returns. Specifically, a panel model with fixed effects is estimated using annual data from 2007 to 2021 for a set of 65 countries as well...

This paper develops a mechanism design approach to study externalities and re-distribution. The mechanism screens individuals’ social weights to strike a balance among broad distributional objectives, incentives to work, and incentives to reduce externalities. The welfare-optimal allocation...

Very few studies have examined the impacts of both climate change and air pollution on student education outcomes, particularly in a developing country setting. Analyzing a rich database consisting of household and school surveys, test scores, and temperature and air pollution data over the past...

Environmental degradation, ranging from air and water pollution to land degradation and climate change, often generates discontent and grievances among affected populations. Such dissatisfaction with living conditions can foster political unrest, as individuals may protest publicly to voice...

In this paper, we investigate the impact of rising temperatures on firm productivity using longitudinal firm-level balance-sheet data from private sector firms in 14 European countries, combined with detailed weather data, including temperature. We begin by estimating firms' total factor...

Mitigating the climate crisis requires changes to policy, business, and consumer behaviour in favour of sustainability. For consumers, use of private motor vehicles and consumption of meat and dairy are high-impact behaviours. To assist behaviour change, it is useful to understand where in the...

Climate change impacts will continue to worsen with rising greenhouse gas (GHG) emissions and global temperatures, underscoring the growing necessity to foresee and comprehend the impact of climate change risks on economic activity. Using quarterly firm-level data of 173 firms from the People's...

This paper documents the extension of MEDSEA, a small open economy DSGE model for Malta, with a detailed energy sector. The model contains relatively rich fiscal and energy blocks allowing the model to simulate the transitional costs related to the economy's decarbonisation, together with the...

This review summarizes the empirical literature on the effects of natural disasters and weather variations on international trade and financial flows. Regarding the effects on trade, I summarize 21 studies of 18 independent research teams and show that there is a large diversity in terms of...