Related papers: Climate-Contingent Finance
Climate change is a major threat to the future of humanity, and its impacts are being intensified by excess man-made greenhouse gas emissions. One method governments can employ to control these emissions is to provide firms with emission…
Sustainability initiatives are set to benefit greatly from the growing involvement of venture capital, in the same way that other technological endeavours have been enabled and accelerated in the post-war period. With the spoils…
Strategies aimed at reducing the negative effects of long-term uncertainty and risk are common in biology, game theory, and finance, even if they entail a cost in terms of mean benefit. Here, we focus on the single mutant's invasion of a…
We study optimal dividend strategies for an insurance company facing natural catastrophe claims, anticipating the arrival of a climate tipping point after which the claim intensity and/or the claim size distribution of the underlying risks…
Climate change will cause an increase in the frequency and severity of flood events, prompting the need for cohesive adaptation policymaking. Designing effective adaptation policies, however, depends on managing the uncertainty of long-term…
Modern progress in artificial intelligence permits to realize algorithms of adaptation for critical events (in addition to ERP). A production emergence, an appearance of new competitive goods, a major change in financial state of partners,…
We study how motivated reasoning affects the provision of climate policy in an electoral competition framework. Voters experience anticipatory disutility when future outcomes appear grim and may therefore distort beliefs in response to…
The increasing penetration of renewable energy poses significant challenges to power grid reliability. There have been increasing interests in utilizing financial tools, such as insurance, to help end-users hedge the potential risk of lost…
Modern society's reliance on power systems is at risk from the escalating effects of wind-related climate change. Yet, failure to identify the intricate relationship between wind-related climate risks and power systems could lead to serious…
Scientific and technological advances in numerical modelling have improved the quality of climate predictions over recent decades, but predictive skill remains limited in many aspects. Extreme events such as heat and cold waves, droughts,…
Although climate and nature related scenario analysis is increasingly important in finance, operational implementations remain limited for translating long horizon environmental scenarios into counterparty credit risk measures used in…
It is well-established that human activity is driving extreme weather patterns, and that these extreme events influence human behaviour. However, few models allow for human behaviours and the climate to dynamically interact. The models…
Climate change is expected to intensify rainfall and other hazards, increasing disruptions in urban transportation systems. Designing effective adaptation strategies is challenging due to the long-term, sequential nature of infrastructure…
How regional heterogeneity in social and cultural processes drive--and respond to--climate dynamics is little studied. Here we present a coupled social-climate model stratified across five world regions and parameterized with geophysical,…
We explore the crucial interplay between climate change and power system planning, highlighting the urgent need to systematically integrate climate information into energy system studies. Climate change impacts the energy sector on multiple…
Biological organisms have to cope with stochastic variations in both the external environment and the internal population dynamics. Theoretical studies and laboratory experiments suggest that population diversification could be an effective…
Natural hazards can considerably impact the overall society of a country. As some degree of public sector involvement is always necessary to deal with the consequences of natural disasters, central governments have increasingly invested in…
The escalating impacts of climate change and the increasing demand for sustainable development and natural resource management necessitate innovative technological solutions. Quantum computing (QC) has emerged as a promising tool with the…
In this paper, I consider a simple heterogeneous agents model of a production economy with uncertain climate change and examine constrained efficient carbon taxation. If there are frictionless, complete financial markets, the simple model…
In this article there is no intention to repeat basic concepts about risk management, but we will try to define why often is usefull the time series analysis during the assessment of risks, and how is possible to compute a significative…