Related papers: An Insurance-Led Response to Climate Change
The economic consequences of drought episodes are increasingly important, although they are often difficult to apprehend in part because of the complexity of the underlying mechanisms. In this article, we will study one of the consequences…
A large database of published model results is used to estimate the distribution of the social cost of carbon as a function of the underlying assumptions. The literature on the social cost of carbon deviates in its assumptions from the…
In recent years, the climate change research community has become highly interested in describing the anthropogenic influence on extreme weather events, commonly termed "event attribution." Limitations in the observational record and in…
It is important for policymakers to understand which financial policies are effective in increasing climate risk disclosure in corporate reporting. We use machine learning to automatically identify disclosures of five different types of…
Alignment of financial market incentives and carbon emissions disincentives is key to limiting global warming. Regulators and standards bodies have made a start by requiring some carbon-related disclosures and proposing others. Here we go…
Disaster response agencies have been shifting from a paradigm of climate forecasting towards one of anticipatory action: assessing not just what the climate will be, but how it will impact specific populations, thereby enabling proactive…
Global Climate Models are key tools for predicting the future response of the climate system to a variety of natural and anthropogenic forcings. Here we show how to use statistical mechanics to construct operators able to flexibly predict…
Public perceptions of climate change arguably contribute to shaping private adaptation and support for policy intervention. In this paper, we propose a novel Climate Concern Index (CCI), based on disaggregated web-search volumes related to…
On the way towards carbon neutrality, climate stress testing provides estimates for the physical and transition risks that climate change poses to the economy and the financial system. Missing firm-level CO2 emissions data severely impedes…
In this paper, we address the problem of providing insurance protection against heavy-tailed losses, for which the expected loss may not even be finite. The product we study is based on a combination of traditional insurance up to a given…
A key strategy in societal adaptation to climate change is using alert systems to prompt preventative action and reduce the adverse health impacts of extreme heat events. This paper implements and evaluates reinforcement learning (RL) as a…
Firms should keep capital to offer sufficient protection against the risks they are facing. In the insurance context methods have been developed to determine the minimum capital level required, but less so in the context of firms with…
By its nature, the so-called social cost of carbon (SCC(t)) will likely not cover the cost induced by climate change (damage cost and abatement cost) if it is used as a CO$_2$-price. It is a marginal price only. We define an implied…
In this paper, we explore advanced modifications to the Tweedie regression model in order to address its limitations in modeling aggregate claims for various types of insurance such as automobile, health, and liability. Traditional Tweedie…
Climate change is a major threat to humanity, and the actions required to prevent its catastrophic consequences include changes in both policy-making and individual behaviour. However, taking action requires understanding the effects of…
This paper develops a dynamic equilibrium model of the insurance market that jointly characterizes insurers' underwriting, investment, recapitalization, and dividend policies under model uncertainty and financial frictions. Competitive…
Driven by the increasing frequency and intensity of natural disasters and chronic climate threats, we investigate the impact of physical climate risk on global equity portfolios. By employing a panel regression analysis on sectoral returns,…
The governance of frontier artificial intelligence (AI) systems--particularly those capable of catastrophic misuse or systemic failure--requires institutional structures that are robust, adaptive, and innovation-preserving. This paper…
Sustainability has over the past two decades emerged as a key concern in human-computer interaction, with a much critiqued focus on quantification and eco-feedback. This approach fits within a modernist framing of sustainability, treating…
With a changing climate, the frequency and intensity of extreme weather events are likely to increase, posing a threat to infrastructure systems' resilience. The response of infrastructure systems to localised failures depends on whether…