Related papers: Quantifying firm-level risks from nature deteriora…
Natural capital accounting is important to efforts that attempt to measure the value of nature to decide on how best to trade-off natural resource productive use and conservation. Much work on measuring reciprocal physical stocks and flows…
Due to climate change, natural hazards that affect energy infrastructure will become more frequent in the future. However, to incorporate natural hazard risk into infrastructure investment decisions, we develop an approach to translate this…
The literature on optimal reinsurance does not deal with how much the effectiveness of such solutions is degraded by errors in parameters and models. The issue is investigated through both asymptotics and numerical studies. It is shown that…
The energy market, and specifically the renewable sector carries volatility and risks, similar to the financial market. Here, we leverage on a well-established, return-risk approach, commonly used by equity portfolio-managers and apply it…
We develop a financial market model in which a large population of firms chooses dynamic emission strategies under climate transition risk, interacting with both environmentally concerned and neutral investors. Firms face a trade-off…
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…
We study solvency of insurers in a comprehensive model where various economic factors affect the capital developments of the companies. The main interest is in the impact of real growth to ruin probabilities. The volume of the business is…
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…
Urgently needed carbon emissions reductions might lead to strict command-and-control decarbonization strategies with potentially negative economic consequences. Analysing the entire firm-level production network of a European economy, we…
Security practices in large organizations are notoriously difficult to assess. The challenge only increases when organizations turn to third parties to provide technology and business services, which typically require tight network…
The study focuses on the Impact of Environmental Accounting on the Profitability of Companies listed on the Bombay Stock Exchange. The study has considered the Amount spent on Environmental protection as an Independent variable and Return…
The impact of international tourism on biodiversity risks has received considerable attention, yet quantitative research in this field remains relatively limited. This study constructs a biodiversity risk index for 155 countries and regions…
Ecosystems face intensifying threats from climate change, overexploitation, and other human pressures, emphasizing the urgent need to identify keystone species and vulnerable ones. While established network-based measures often rely on a…
This note investigates the causes of the quality anomaly, which is one of the strongest and most scalable anomalies in equity markets. We explore two potential explanations. The "risk view", whereby investing in high quality firms is…
We consider the effect of non-constant parameters on the human-forest interaction logistic model coupled with human technological growth introduced in "Deforestation and world population sustainability: a quantitative analysis"[1]. In…
To reduce global biodiversity loss, there is an urgent need to determine the most efficient allocation of conservation resources. Recently, there has been a growing trend for many governments to supplement public ownership and management of…
This paper introduces the concept of a global financial market for environmental indices, addressing sustainability concerns and aiming to attract institutional investors. Risk mitigation measures are implemented to manage inherent risks…
As a new type of cyber attacks, advanced persistent threats (APTs) pose a severe threat to modern society. This paper focuses on the assessment of the risk of APTs. Based on a dynamic model characterizing the time evolution of the state of…
With a steadily growing population and rapid advancements in technology, the global economy is increasing in size and complexity. This growth exacerbates global vulnerabilities and may lead to unforeseen consequences such as global…
Urbanization enables economic growth but also harms the environment through degradation. Traditional methods of detecting environmental issues have proven inefficient. Machine learning has emerged as a promising tool for tracking…