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In this article, we present a novel approach for the construction of an environment-friendly green portfolio using the ESG ratings, and application of the modern portfolio theory to present what we call as the ``green efficient frontier''…

Portfolio Management · Quantitative Finance 2023-05-29 Shashwat Mishra , Rishabh Raj , Siddhartha P. Chakrabarty

Given the fact that climate change has become one of the most pressing problems in many countries in recent years, specialized research on how to mitigate climate change has been adopted by many countries. Within this discussion, the…

General Economics · Economics 2024-12-24 Azizul Hakim Rafi , Abdullah Al Abrar Chowdhury , Adita Sultana , Abdulla All Noman

Principal stratification analysis evaluates how causal effects of a treatment on a primary outcome vary across strata of units defined by their treatment effect on some intermediate quantity. This endeavor is substantially challenged when…

Methodology · Statistics 2024-03-21 Chanmin Kim , Corwin Zigler

Techniques to reduce the energy burden of an industrial ecosystem often require solving a multiobjective optimization problem. However, collecting experimental data can often be either expensive or time-consuming. In such cases, statistical…

Machine Learning · Computer Science 2021-09-07 Akira Horiguchi , Thomas J. Santner , Ying Sun , Matthew T. Pratola

In order to explore the possibility of carbon credits for greening projects, which play an important role in climate change mitigation, this paper examines a formula for estimating the amount of carbon fixation for greening activities in…

Econometrics · Economics 2024-07-09 Kento Ichii , Toshiki Muraoka , Nobumichi Shinohara , Shunsuke Managi , Shutaro Takeda

Putting a price on carbon -- with taxes or developing carbon markets -- is a widely used policy measure to achieve the target of net-zero emissions by 2050. This paper tackles the issue of producing point, direction-of-change, and density…

Econometrics · Economics 2024-02-21 Andrea Bastianin , Elisabetta Mirto , Yan Qin , Luca Rossini

Soil organic carbon (SOC) plays a major role in the global carbon budget. It can act as a source or a sink of atmospheric carbon, thereby possibly influencing the course of climate change. Improving the tools that model the spatial…

Historically, financial risk management has mostly addressed risk factors that arise from the financial environment. Climate risks present a novel and significant challenge for companies and financial markets. Investors aiming for avoidance…

Risk Management · Quantitative Finance 2025-12-25 Suparna Biswas , Rituparna Sen

Decision trees with binary splits are popularly constructed using Classification and Regression Trees (CART) methodology. For binary classification and regression models, this approach recursively divides the data into two near-homogenous…

Machine Learning · Statistics 2020-08-17 Jason M. Klusowski

Understanding how climate and innovation policies perform during socio-technical transitions remains a central challenge in innovation studies. Empirical analyses of the relationship between economic growth and carbon emissions continue to…

Theoretical Economics · Economics 2026-01-06 Ngueuleweu Tiwang Gildas

This paper presents an analysis of Green Gross Domestic Product (GGDP) using the System of Environmental-Economic Accounting (SEEA) model to evaluate its impact on global climate mitigation and economic health. GGDP is proposed as a…

Econometrics · Economics 2024-09-05 Mingpu Ma

Despite decades of climate policy and rapid improvements in energy efficiency, global CO2 emissions continue to rise, suggesting the presence of structural drivers that offset efficiency gains. Here we identify financial leverage as a key…

Applied Physics · Physics 2026-02-26 Silvia Montagnani , Barnabe Ledoux , David Lacoste

Motivated by the remarkable success of Bayesian additive regression trees (BART) in regression modelling, we propose a novel nonparametric Bayesian method, termed Functional BART (FBART), tailored specifically for function-on-scalar…

Methodology · Statistics 2025-06-03 Jiahao Cao , Shiyuan He , Bohai Zhang

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…

Mathematical Finance · Quantitative Finance 2026-02-24 Pierre Lavigne , Peter Tankov

As carbon pricing mechanisms like the EU Emissions Trading System are set to increase prices of energy consumption, software architects face growing pressure to design applications that operate within financially predictable emission…

Software Engineering · Computer Science 2026-04-14 Leo Wilhelm Lierse , Mahyar Tourchi Moghaddam , Sebastian Werner

Sustainability became the most important component of world development, as countries worldwide fight the battle against the climate change. To understand the effects of climate change, the ecological footprint, along with the biocapacity…

Physics and Society · Physics 2019-10-28 Radmila Janković , Ivan Mihajlović , Alessia Amelio

As global warming soars, the need to assess and reduce the environmental impact of recommender systems is becoming increasingly urgent. Despite this, the recommender systems community hardly understands, addresses, and evaluates the…

Information Retrieval · Computer Science 2025-09-17 Lukas Wegmeth , Tobias Vente , Alan Said , Joeran Beel

We provide ex-post empirical analysis of the effects of climate policies on carbon dioxide emissions at the aggregate national level. Our results are based on a comprehensive database of 121 countries. As climate policies we examine carbon…

General Economics · Economics 2026-01-14 Emanuel Kohlscheen , Richhild Moessner , Elod Takats

There is great uncertainty about future climate conditions and the appropriate policies for managing interactions between the climate and the economy. We develop a multidimensional computational model to examine how uncertainties and risks…

Economics · Quantitative Finance 2015-04-30 Yongyang Cai , Kenneth L. Judd , Thomas S. Lontzek

Probabilistic projections of baseline (with no additional mitigation policies) future carbon emissions are important for sound climate risk assessments. Deep uncertainty surrounds many drivers of projected emissions. Here we use a simple…

Applications · Statistics 2022-02-25 Vivek Srikrishnan , Yawen Guan , Richard S. J. Tol , Klaus Keller
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