scholarly journals Hedging Climate Change News

2020 ◽  
Vol 33 (3) ◽  
pp. 1184-1216 ◽  
Author(s):  
Robert F Engle ◽  
Stefano Giglio ◽  
Bryan Kelly ◽  
Heebum Lee ◽  
Johannes Stroebel
Keyword(s):  
Climate Change ◽  
Textual Analysis ◽  
Third Party ◽  
Climate Risk ◽  
Future Research ◽  
Climate Change Risk ◽  
Out Of Sample ◽  
Portfolio Approach

Abstract We propose and implement a procedure to dynamically hedge climate change risk. We extract innovations from climate news series that we construct through textual analysis of newspapers. We then use a mimicking portfolio approach to build climate change hedge portfolios. We discipline the exercise by using third-party ESG scores of firms to model their climate risk exposures. We show that this approach yields parsimonious and industry-balanced portfolios that perform well in hedging innovations in climate news both in sample and out of sample. We discuss multiple directions for future research on financial approaches to managing climate risk.

scholarly journals A Research Agenda for Affective Dimensions in Climate Change Risk Perception and Risk Communication

2021 ◽  
Vol 3 ◽  
Author(s):  
Raúl Salas Reyes ◽  
Vivian M. Nguyen ◽  
Stephan Schott ◽  
Valerie Berseth ◽  
Jenna Hutchen ◽  
...  
Keyword(s):  
Climate Change ◽  
Risk Perception ◽  
Risk Communication ◽  
Science Communication ◽  
Climate Risk ◽  
Future Research ◽  
Climate Change Risk ◽  
Depth Analysis ◽  
Affective Dimensions

There is a growing body of literature that examines the role of affect and emotions in climate change risk perception and risk communication. Conceptions of affect and emotions have differed according to theoretical perspectives and disciplinary orientations (e.g., sociology of risk, psychology of risk, climate science communication), but little has been done to map these differences. This perspective article provides an in-depth analysis of the study of affect and emotions in climate change risk research through a literature review of studies published in the last 20 years. In this perspective, we examined how affect is conceived, what emotions have been considered, and their role in climate change risk perception and risk communication. Early studies in climate risk perception and risk communication included vaguely defined emotions (e.g., negative and positive) in climate risk perception and risk communication studies, more recently turning attention to how different affective dimensions interact with other factors, such as personal experience, knowledge, culture and worldviews, gender, and social norms. Using this review as a mapping exercise of the research landscape on affect and emotions in climate risk perception and communication, we suggest that future research could benefit from more interdisciplinary work that explores the role of different affective responses and their intensities before, during, and after climate-related events.

scholarly journals Climate change risk: Challenge for corporate governance

2021 ◽  
Vol 10 (2, special issue) ◽  
pp. 258-268
Author(s):  
Hugh Grove ◽  
Maclyn Clouse ◽  
Tracy Xu
Keyword(s):  
Climate Change ◽  
Corporate Governance ◽  
Global Climate Change ◽  
Boards Of Directors ◽  
Global Climate ◽  
Research Question ◽  
Empirical Studies ◽  
Future Research ◽  
Climate Change Risk ◽  
Climate Change Risks

The major research question of this paper is to analyze climate change risk as a challenge to corporate governance. Climate action failure was the environmental risk most frequently listed in the top ten country risks. It also becomes a major reason that many companies are taking their own initiatives on climate change action which poses an imminent challenge for corporate governance as boards of directors track and assess such initiatives by their own companies. Boards can play a key role in guiding their organizations into the next new normal in the wake of global pandemic, economic disruptions, and ongoing climate change problems. This paper identifies and studies the corporate governance risks and opportunities related to global climate change risk and provides recommendations to boards of directors. The major sections of this paper are global climate change risks, corporate climate change pledges, climate-related financial disclosures, major topics in the Global Climate Change report, whether companies are ready to manage major climate change risks and opportunities, climate-related investment benchmarks, and conclusions. Future research could investigate this climate change risk challenge with case studies or empirical studies.

Weather, Values, Capacity and Concern: Toward a Social-Cognitive Model of Specialty Crop Farmers’ Perceptions of Climate Change Risk

2021 ◽  
pp. 001391652110266
Author(s):  
Guang Han ◽  
Ethan D. Schoolman ◽  
J. Gordon Arbuckle ◽  
Lois Wright Morton
Keyword(s):  
Climate Change ◽  
Risk Perceptions ◽  
Structural Equation ◽  
Crop Production ◽  
Cognitive Model ◽  
Extreme Weather Events ◽  
Equation Modeling ◽  
Future Research ◽  
Climate Change Risk ◽  
Specialty Crop

As specialty crop production has become increasingly important to U.S. agriculture, public and private stakeholders have called for research and outreach efforts centered on risks posed by climate change. Drawing on a survey of specialty crop farmers, this study explores farmers’ perceptions of climate change risks. Underlying cognitive, experiential, and socio-cultural factors hypothesized to influence farmers’ climate change risk perceptions are tested using structural equation modeling techniques. Results show that specialty crop farmers exhibit an overall moderate concern about climatic risks. The more capable and prepared farmers feel themselves to be, the less concerned they are about climate change. Farmers who have recently experienced more extreme weather events perceive climate change to present greater risks. In addition, farmers’ risk perceptions are also shaped by attitudes toward human exemptionalism and productivism values. Based on these findings, we provide recommendations for outreach and future research.

Climate Change News Risk and Corporate Bond Returns

2020 ◽  
pp. 1-25 ◽  
Author(s):  
Thanh D. Huynh ◽  
Ying Xia
Keyword(s):  
Climate Change ◽  
Asset Pricing ◽  
Environmental Performance ◽  
Performance Pay ◽  
High Potential ◽  
Corporate Bond ◽  
Climate Risk ◽  
Climate Change Risk ◽  
Corporate Policies ◽  
Bond Returns

Abstract We examine whether climate change news risk is priced in corporate bonds. We estimate bond covariance with a climate change news index and find that bonds with a higher climate change news beta earn lower future returns, consistent with the 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 environmental performance. Our findings suggest that corporate policies aimed at improving environmental performance pay off when the market is concerned about climate change risk.

scholarly journals Public Perception of Climate Risk: The Case of Greece

2016 ◽  
Author(s):  
Asimina Voskaki ◽  
Konstantinos Tsermenidis
Keyword(s):  
Climate Change ◽  
Behavior Change ◽  
Questionnaire Survey ◽  
Public Perception ◽  
Climate Risk ◽  
Climate Change Risk ◽  
Economic Issues ◽  
Individual Perception ◽  
Area Of Concern ◽  
Of Greece

Even though Greece is considered a vulnerable region in terms of climate hazards, public perception and attitude do not always identify climate change as an important environmental area of concern, especially when compared to socio-economic issues. The key issue of this paper is to investigate and analyse public perception in Greece as regards to climate change risk. Through a questionnaire survey this paper analyses trends that exist, peoples’ opinion and awareness with regards to climate risk and how willing they are to change current lifestyle, to pay or to act to minimize or to prevent the risk. Conventional wisdom of this paper is to highlight factors that influence individual perception and point out drivers of behavior change that can support efficiently future adaptation plans.

scholarly journals Econometric Assessment of Institutional Quality in Mitigating Global Climate-Change Risk

2022 ◽  
Vol 14 (2) ◽  
pp. 669
Author(s):  
Anam Javaid ◽  
Noman Arshed ◽  
Mubbasher Munir ◽  
Zahrahtul Amani Zakaria ◽  
Faten S. Alamri ◽  
...  
Keyword(s):  
Climate Change ◽  
Co2 Emissions ◽  
Generalized Least Squares ◽  
Climate Risk ◽  
Renewable Energy Consumption ◽  
Rapid Urbanization ◽  
Climate Change Risk ◽  
The World ◽  
The Impact

Background: Environmental deterioration is the alarming situation that results from rapid urbanization and development. The rising temperature and climate volatility are accounted for by the massive carbon dioxide (CO2) emissions. The research on climate-change mitigation is trying to curtail the situations before they become irreversible and unmanageable. This study explores the role of institutions in mitigating climate change by moderating the impact of environmental quality on climate change risk. Methodology: Global data sets have been collected from world big data depositories like the World Economic Forum (WEF), the World Development Indicators (WDI), and the International Country Risk Guide (ICRG). Countries that are listed in WEF were used as the sample of the study. An analysis was based on 114 countries that are based on the availability of data. For estimation, descriptive statistics, correlation analysis, change effects, and a Panel Feasible Generalized Least Squares (FGLS) model were used for estimating the results. Results: The global assessment indicates that CO2 emissions increase the climate risk, but its impact can be reduced by increasing the quality of institutions. Additionally, an increase in renewable energy consumption and economic growth reduces the climate risk. Implications: It is an instrumental study that empirically investigated the role of institutions in reducing climate risk by moderating CO2 emissions. The results of this study will help policymakers to formulate policies regarding environmental protection.

Panic Selling When Disaster Strikes: Evidence in the Bond and Stock Markets

2021 ◽  
Author(s):  
Thanh D. Huynh ◽  
Ying Xia
Keyword(s):  
Climate Change ◽  
Natural Disasters ◽  
Stock Prices ◽  
Stock Markets ◽  
Corporate Bond ◽  
Climate Risk ◽  
Special Issue ◽  
Climate Change Risk ◽  
Level Data ◽  
The U.S

This study uses disaggregated establishment-level data to identify a firm’s exposure to physical climate risk and examines investors’ reaction to natural disasters in both the U.S. corporate bond and stock markets. We find that, when a firm is exposed to disasters, investors overreact by depressing the current bond and stock prices, causing future returns to be higher. However, firms with a strong environmental profile experience lower selling pressure on their bonds and stocks, although their fundamentals weakened following disasters. The evidence suggests that corporate investment in improving environmental profiles pays off when climate change risk is materialized. This paper was accepted by Colin Mayer, special issue on business and climate change.

Effect of scenario assumptions on climate change risk estimates in a water resource system

2014 ◽  
Vol 59 (2) ◽  
pp. 149-160 ◽  
Author(s):  
K Li ◽  
J Qi ◽  
C Brown ◽  
J Ryan
Keyword(s):  
Climate Change ◽  
Water Resource ◽  
Water Resource System ◽  
Climate Change Risk ◽  
Risk Estimates ◽  
Resource System

Climate Change Risk Awareness in the Property Sector: Australia

2016 ◽  
Author(s):  
Sven Bienert ◽  
Georgia Warren-Myers ◽  
Jens Hirsch
Keyword(s):  
Climate Change ◽  
Risk Awareness ◽  
Climate Change Risk

On Climate Change Risks of Long-Term Socio-Economic Development in Russia

2019 ◽  
pp. 79-95
Author(s):  
N.E. Terentiev
Keyword(s):  
Climate Change ◽  
Economic Development ◽  
Technological Innovation ◽  
Global Climate Change ◽  
Global Climate ◽  
Climate Risk ◽  
Climate Change Risks ◽  
Socio Economic Development ◽  
Management Policies

Based on the latest data, paper investigates the dynamics of global climate change and its impact on economic growth in the long-term. The notion of climate risk is considered. The main directions of climate risk management policies are analyzed aimed, first, at reducing anthropogenic greenhouse gas emissions through technological innovation and structural economic shifts; secondly, at adaptation of population, territories and economic complexes to the irreparable effects of climate change. The problem of taking into account the phenomenon of climate change in the state economic policy is put in the context of the most urgent tasks of intensification of long-term socio-economic development and parrying strategic challenges to the development of Russia.

Sign in / Sign up

Export Citation Format

Share Document