The Costs of Hedging Disaster Risk and Home Prices: Evidence from Flood Insurance DOI

Shan Ge,

Ammon Lam,

Ryan Lewis

и другие.

SSRN Electronic Journal, Год журнала: 2022, Номер unknown

Опубликована: Янв. 1, 2022

We use flood insurance to study how the costs of hedging natural disaster risk changes home prices. The Biggert--Waters Act mandated premium increases that affected properties discontinuously around high boundary based on timing construction. Utilizing a triple-difference design, we estimate $1 relative increase in annual premiums causes reduction $102 effect is much larger for areas are exposed future flooding from sea level rise, indicating pricing can accelerate incorporation climate asset markets. Our results contrast prior literature, which finds little values, and have important implications policymakers considering another revamp methodologies.

Язык: Английский

Climate Stress Testing DOI Creative Commons
Viral V. Acharya, Richard Berner, Robert F. Engle

и другие.

Annual Review of Financial Economics, Год журнала: 2023, Номер 15(1), С. 291 - 326

Опубликована: Окт. 3, 2023

We explore the design of climate stress tests to assess and manage macroprudential risks from change in financial sector. review scenarios currently employed by regulators, highlighting need ( a) consider many transition as dynamic policy choices, b) better understand incorporate feedback loops between economy, c) further compound risk which co-occur with other risks. discuss how process mapping into firm outcomes can existing evidence on effects various climate-related credit market outcomes. argue that more research is required identify channels through plausible lead meaningful short-run impact given typical bank loan maturities, bank-lending responses risks, adequacy pricing markets, d) participants form expectations affects stability. Finally, we advantages disadvantages using market-based be conducted publicly available data complement stress-testing frameworks.

Язык: Английский

Процитировано

51

Political Polarization Affects Households' Financial Decisions: Evidence from Home Sales DOI
W. Ben McCartney,

John Orellana-Li,

Calvin Zhang

и другие.

The Journal of Finance, Год журнала: 2024, Номер 79(2), С. 795 - 841

Опубликована: Фев. 11, 2024

ABSTRACT Political identity and partisanship are salient features of today's society. Using deeds records voter rolls, we show that current residents more likely to sell their homes when opposite‐party neighbors move in nearby than unaffiliated or same‐party do. This is especially true the new politically active, consistent with an animosity between parties mechanism. We conclude affective polarization not limited purely political settings affects one household's most important financial decisions, home transactions.

Язык: Английский

Процитировано

26

Shaping sustainability: How corporate reputation can be enhanced under climate change conditions DOI
Junyu Pan, Ahmed Imran Hunjra, Maria Giuseppina Bruna

и другие.

Finance research letters, Год журнала: 2024, Номер 62, С. 105174 - 105174

Опубликована: Фев. 29, 2024

Язык: Английский

Процитировано

18

Climate policy uncertainty and the cross-section of stock returns DOI Creative Commons
Sirimon Treepongkaruna, Kam Fong Chan, Ihtisham Malik

и другие.

Finance research letters, Год журнала: 2023, Номер 55, С. 103837 - 103837

Опубликована: Март 30, 2023

We show that climate policy uncertainty (CPU) is priced cross-sectionally in individual stocks. On average, the risk-adjusted annual future returns of stocks with low exposure to CPU are 5.5%–6.3% higher than those high exposure. This finding consistent Merton's (1973) intertemporal CAPM where uncertainty-averse investors willing pay prices and accept lower for CPU-sensitive Low CPU-beta firms primarily value crash risk, they have under Democratic presidencies. Finally, we develop a novel factor, it outperforms size factors.

Язык: Английский

Процитировано

38

Physical climate risk attention and dynamic volatility connectedness among new energy stocks DOI
Xu Gong, Qin Liao

Energy Economics, Год журнала: 2024, Номер 136, С. 107711 - 107711

Опубликована: Июнь 10, 2024

Язык: Английский

Процитировано

15

When climate meets real estate: A survey of the literature DOI Creative Commons
Justin Contat,

Carrie Hopkins,

Luis Mejia

и другие.

Real Estate Economics, Год журнала: 2024, Номер 52(3), С. 618 - 659

Опубликована: Апрель 15, 2024

Abstract With near unanimity, climate scientists project natural disasters to increase in frequency, severity, and geographic scope over the next century. We survey academic literature at intersection of these risks real estate. Our review physical includes price, loan performance, migratory effects stemming from flooding, wildfires, sea level rise. transition risks, including energy use decarbonization, as they relate Where possible, we explain how topics may intersect with housing affordability, especially historically disadvantaged communities. conclude by highlighting critical areas for future research.

Язык: Английский

Процитировано

13

The role of AI capabilities in environmental management: Evidence from USA firms DOI
Anqi Jiao,

Juntai Lu,

Honglin Ren

и другие.

Energy Economics, Год журнала: 2024, Номер 134, С. 107653 - 107653

Опубликована: Май 21, 2024

Язык: Английский

Процитировано

13

Do salient climatic risks affect shareholder voting? DOI Creative Commons
Eliezer M. Fich, Guosong Xu

Review of Finance, Год журнала: 2025, Номер unknown

Опубликована: Янв. 16, 2025

Abstract Institutional investors affected by hurricanes subsequently support environmental proposals in non-affected firms even if they never voted for similar initiatives. Affected raise their holdings where pro-environment votes are consequential. The increased voting after has real effects as endorsed more hurricane-afflicted likely to pass. Moreover, both market capitalization and analysts’ recommendations decline pass proposals. Our evidence suggests that natural disasters institutional investors’ concerns about the environment potential fund flow disruptions. These concerns, turn, influence activism, corporate policies, firm performance.

Язык: Английский

Процитировано

1

Ex-ante litigation risk and firm-level climate-change exposure DOI
Ashrafee T Hossain, Hatem Rjiba, Dongyang Zhang

и другие.

Journal of Economic Behavior & Organization, Год журнала: 2023, Номер 214, С. 731 - 746

Опубликована: Сен. 6, 2023

Язык: Английский

Процитировано

16

Leveraging the Disagreement on Climate Change: Theory and Evidence DOI Open Access

Laura Bakkensen,

Toàn Phan, Tsz-Nga Wong

и другие.

Federal Reserve Bank of Richmond Working Papers, Год журнала: 2023, Номер 23(01), С. 1 - 75

Опубликована: Янв. 4, 2023

We theoretically and empirically investigate how climate risks affect collateralized debt markets. First, we develop a model where agents have different beliefs over long-run risk. In contrast with existing two-period competitive-equilibrium models, our infinite-horizon competitive-search predicts more pessimistic are likely to make leveraged investments on risky collateral assets. They also tend use longer maturity contracts, which exposed the Second, employing large data real estate mortgage transactions, combined high resolution sea-level-rise maps, find robust evidence for these findings. show monetary securitization policies risk exposure. Our results highlight importance of heterogeneous in understanding effects change financial system.

Язык: Английский

Процитировано

12