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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,…

Portfolio Management · Quantitative Finance 2026-04-14 Michele Azzone , Carlo Bechi , Gabriele Sbaiz

Climate-related phenomena are increasingly affecting regions worldwide, manifesting as floods, water scarcity, and heat waves, significantly impairing companies' assets and productivity. It is essential for asset managers to quantify the…

Risk Management · Quantitative Finance 2025-10-15 Michele Azzone , Matteo Ghesini , Davide Stocco , Lorenzo Viola

Estimating the effects of climate on economic output is crucial for formulating climate policy, but current empirical findings remain ambiguous. Using annual panel model and panel long-difference model with global subnational data from…

General Economics · Economics 2025-05-26 Jinchi Dong , Richard S. J. Tol , Jinnan Wang

Extreme value applications commonly employ regression techniques to capture cross-sectional heterogeneity or time-variation in the data. Estimation of the parameters of an extreme value regression model is notoriously challenging due to the…

Methodology · Statistics 2022-05-12 Debbie J. Dupuis , Sebastian Engelke , Luca Trapin

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…

Applications · Statistics 2016-01-13 Gianluca Rosso

Like ESG investing, climate change is an important concern for asset managers and owners, and a new challenge for portfolio construction. Until now, investors have mainly measured carbon risk using fundamental approaches, such as with…

Portfolio Management · Quantitative Finance 2021-01-27 Théo Roncalli , Théo Le Guenedal , Frédéric Lepetit , Thierry Roncalli , Takaya Sekine

This study investigates the long-term effects of temperature variations on economic growth using a data-driven approach. Leveraging machine learning techniques, we analyze global land surface temperature data from Berkeley Earth and…

General Economics · Economics 2023-08-15 Eugene Kharitonov , Oksana Zakharchuk , Lin Mei

The empirical evidence suggests that key accumulation decisions and risky choices associated with economic development depend, at least in part, on economic preferences such as willingness to take risk and patience. This paper studies…

General Economics · Economics 2022-08-30 Michelle Escobar Carias , David Johnston , Rachel Knott , Rohan Sweeney

I propose a new conceptual framework to disentangle the impacts of weather and climate on economic activity and growth: A stochastic frontier model with climate in the production frontier and weather shocks as a source of inefficiency. I…

General Economics · Economics 2021-05-07 Richard S. J. Tol

The thermal characterisation of a building envelope is usually best performed from on site measurements with controlled heating power set points. Occupant-friendly measurement conditions provide on the contrary less informative data.…

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…

General Finance · Quantitative Finance 2025-03-17 Zlata Tabachová , Christian Diem , Johannes Stangl , András Borsos , Stefan Thurner

Extreme temperature outages can lead to not just economic losses but also various non-energy impacts (NEI) due to significant degradation of indoor operating conditions caused by service disruptions. However, existing resilience assessment…

Systems and Control · Electrical Eng. & Systems 2024-06-14 Min Gyung Yu , Monish Mukherjee , Shiva Poudela , Sadie R. Bender , Sarmad Hanif , Trevor D. Hardy , Hayden M. Reeve

Mixed modeling of extreme values and random effects is relatively unexplored topic. Computational difficulties in using the maximum likelihood method for mixed models and the fact that maximum likelihood method uses available data and does…

Applications · Statistics 2019-07-05 Ali Reza Fotouhi

Understanding and mapping extreme heat is critical for risk management and public health planning, particularly in regions with complex terrain and heterogeneous climate. We present a case study of extreme heat in the Four Corners region of…

Applications · Statistics 2026-04-22 Ben Seiyon Lee , Reetam Majumder , Jordan Richards , Emma S. Simpson , Likun Zhang

We estimate the temperature sensitivity of residential electricity demand during extreme temperature events using the distribution-to-scalar regression model. Rather than relying on simple averages or individual quantile statistics of raw…

Econometrics · Economics 2025-03-11 Kyungsik Nam , Won-Ki Seo

The power grid is experiencing a multi-fold transformation while the global climate evolves with record-breaking extreme temperatures during heat domes, polar vortices, and severe ice. Over the decades, these extreme temperature events have…

Systems and Control · Electrical Eng. & Systems 2024-12-24 Kishan Prudhvi Guddanti , Alok Kumar Bharati , Sameer Nekkalapu , Joseph McWheter , Scott Morris

Modelling dependencies between climate extremes is important for climate risk assessment, for instance when allocating emergency management funds. In statistics, multivariate extreme value theory is often used to model spatial extremes.…

Abstract: The rising global temperatures caused by climate change significantly impact energy consumption and electricity generation. Fluctuating temperatures and frequent extreme weather events disrupt energy production and consumption…

Physics and Society · Physics 2024-12-18 MohammadReza Askari , Navid Parsa

Assessing climate risk and its potential impacts on our cities and economies is of fundamental importance. Extreme weather events, such as hurricanes, floods, and storm surges can lead to catastrophic damages. We propose a flexible approach…

Risk Management · Quantitative Finance 2024-02-06 Chi Truong , Matteo Malavasi , Han Li , Stefan Trueck , Pavel V. Shevchenko

Climate adaptation could yield significant benefits. However, the uncertainty of which future climate scenarios will occur decreases the feasibility of proactively adapting. Climate adaptation projects could be underwritten by benefits paid…

General Finance · Quantitative Finance 2022-07-06 John Nay
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