Related papers: Climate-Contingent Finance
Extreme weather events have an enormous impact on society and are expected to become more frequent and severe with climate change. In this context, resilience planning becomes crucial for risk mitigation and coping with these extreme…
We developed a coupled social-climate network model to understand the interaction between climate change opinion spread and the climate system and determine the role of this interaction in shaping collective actions and global temperature…
There are clear benefits associated with a particular consumer choice for many current markets. For example, as we consider here, some products might carry environmental or `green' benefits. Some consumers might value these benefits while…
To achieve ambitious greenhouse gas emission reduction targets in time, the planning of future energy systems needs to accommodate societal preferences, e.g. low levels of acceptance for transmission expansion or onshore wind turbines, and…
Addressing climate change effectively requires more than cataloguing the number of policies in place; it calls for tools that can reveal their thematic priorities and their tangible impacts on development outcomes. Existing assessments…
Carbon emissions significantly contribute to climate change, and carbon credits have emerged as a key tool for mitigating environmental damage and helping organizations manage their carbon footprint. Despite their growing importance across…
We adapt Leland's dynamic capital structure model to the context of an insurance company selling participating life insurance contracts explaining the existence of life insurance contracts which provide both a guaranteed payment and surplus…
Climate change is one of the most pressing challenges of our time, requiring rapid action across society. As artificial intelligence tools (AI) are rapidly deployed, it is therefore crucial to understand how they will impact climate action.…
The economic impacts of climate change are highly uncertain. Two of the most important uncertainties are the sensitivity of the climate system and the so-called damage functions, which relate climate change to economic damages and benefits.…
Accurately forecasting the weather is a key requirement for climate change mitigation. Data-driven methods offer the ability to make more accurate forecasts, but lack interpretability and can be expensive to train and deploy if models are…
Foundation models have enormous potential in advancing Earth and climate sciences, however, current approaches may not be optimal as they focus on a few basic features of a desirable Earth and climate foundation model. Crafting the ideal…
I study the dynamic, general equilibrium implications of climate-change-linked transition risk on macroeconomic outcomes and asset prices. Climate-change-linked expectations of fossil fuel restrictions can produce a ``run on fossil fuels''…
Stringent climate policy compatible with the targets of the 2015 Paris Agreement would pose a substantial fiscal challenge. Reducing carbon dioxide emissions by 95% or more by 2050 would raise 7% (1-17%) of GDP in carbon tax revenue, half…
We study how the climate transition through a low-carbon economy, implemented by carbon pricing, propagates in a credit portfolio and precisely describe how carbon price dynamics affects credit risk measures such as probability of default,…
To analyze climate change mitigation strategies, economists rely on simplified climate models - climate emulators. We propose a generic and transparent calibration and evaluation strategy for these climate emulators that is based on Coupled…
Climate change and other anthropogenic pressures are likely to induce tipping points in marine ecosystems, potentially leading to declines in primary productivity and fisheries. Despite increasing attention to nature-related financial risks…
There is an increasingly urgent need to develop knowledge and practices to manage climate risks. For example, flood-risk information can inform household decisions such as purchasing a home or flood insurance. However, flood-risk estimates…
Climate hazards can cause major disasters when they occur simultaneously as compound hazards. To understand the distribution of climate risk and inform adaptation policies, scientists need to simulate a large number of physically realistic…
Models necessarily capture only parts of a reality. Prediction models aim at capturing a future reality. In this paper we address the question of how the future is constructed (or: imagined) in an investment context where market…
Climate change presents an existential threat to human societies and the Earth's ecosystems more generally. Mitigation strategies naturally require solving a wide range of challenging problems in science, engineering, and economics. In this…