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Full-Text Articles in Social and Behavioral Sciences
Pricing Climate Change Risk In Corporate Bonds, Elsa Allman
Pricing Climate Change Risk In Corporate Bonds, Elsa Allman
Publications and Research
This paper examines whether corporate bondholders price climate change risk. I find that firms exposed to higher sea level rise (SLR) across U.S. branch locations pay a premium when issuing bonds. Specifically, a one standard deviation increase in a firm’s SLR exposure is associated with a 2% increase of average yield spreads equivalent to 4 basis points. This effect is more pronounced for firms in industries vulnerable to extreme weather conditions, which are less spatially diversified, and issuing bonds with maturities ranging from 5 to 10 years. In addition, I find no evidence that credit rating agencies account for SLR …
The Economics Of Adaptation To Climate Change In Coasts And Oceans: Literature Review, Policy Implications And Research Agenda, Charles S. Colgan
The Economics Of Adaptation To Climate Change In Coasts And Oceans: Literature Review, Policy Implications And Research Agenda, Charles S. Colgan
Journal of Ocean and Coastal Economics
Sea level rise and other effects of climate change on oceans and coasts around the world are major reasons to halt the emissions of greenhouse gases to the maximum extent. But historical emissions and sea level rise have already begun so steps to adapt to a world where shorelines, coastal populations, and economies could be dramatically altered are now essential. This presents significant economic challenges in four areas. (1) Large expenditures for adaptation steps may be required but the extent of sea level rise and thus the expenditures are unknowable at this point. Traditional methods for comparing benefits and costs …