Weathering the storm: extreme weather's impact on international financial markets
研究了1995至2024年间21个国家260次极端天气事件对股票市场指数的影响，发现其影响目前有限但呈上升趋势，提醒关注气候变化的长期金融风险。
One consequence of climate change is an increase in the frequency and severity of extreme weather events. The impact of these events is felt by many economies worldwide (e.g. through the cost of replacing damaged assets). The aim of this paper is to examine the relationships between various stock market indices and 260 selected extreme weather events in 21 countries between 1995 and 2024. To address this, we regress all the events against various stock market indices for several sectors of the economy. We find that extreme weather events have so far had a limited impact on stock markets compared with systemic events such as financial crises. However, the overall trend suggests that the physical risk of climate change is having a gradually increasing impact on financial markets. These findings underscore the need for proactive measures to address the escalating long-term financial risks associated with climate change.