The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach
In this paper, we investigate how climate risk impacts the sovereign risk, the stock market evolution, and the degree of competitiveness, starting from the macroeconomic and financial effects globally produced by climate change. Using both quantile and logistic regression and a sample of 22 count...
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| Format: | Article |
| Language: | English |
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Editura ASE
2022-08-01
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| Series: | Amfiteatru Economic |
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| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3130.pdf |
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| author | Teodora Cristina Barbu Cosmin-Octavian Cepoi Crina Raluca Petrescu Mariana Vuță |
| author_facet | Teodora Cristina Barbu Cosmin-Octavian Cepoi Crina Raluca Petrescu Mariana Vuță |
| author_sort | Teodora Cristina Barbu |
| collection | DOAJ |
| description | In this paper, we investigate how climate risk impacts the sovereign risk, the stock market
evolution, and the degree of competitiveness, starting from the macroeconomic and financial
effects globally produced by climate change. Using both quantile and logistic regression and
a sample of 22 countries, of which 16 EU members and 6 OECD members, during the
2008-2019 period, the results highlight a negative relationship between climate risks and the
evolution of stock market capitalization as a percentage of GDP. Moreover, the climate risk
leads to an increase in sovereign risk only across inferior quantiles, i.e., when the CDS level
is small. In addition, based on a logit regression model, we show that the level of
competitiveness of a country is influenced to a small extent by the level of climate risk. This
could be a consequence of concerns among authorities and companies in each country willing
to implement development strategies to achieve the goals proposed by the European Green
Pact and standardization of the global price of CO2. |
| format | Article |
| id | doaj-art-3d76031e04974fb9b570999f2117fbe1 |
| institution | OA Journals |
| issn | 1582-9146 2247-9104 |
| language | English |
| publishDate | 2022-08-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Amfiteatru Economic |
| spelling | doaj-art-3d76031e04974fb9b570999f2117fbe12025-08-20T02:16:29ZengEditura ASEAmfiteatru Economic1582-91462247-91042022-08-01246159761210.24818/EA/2022/61/597The Assessment of Climate Risk Impact on the Economy: A Panel Data ApproachTeodora Cristina Barbu0https://orcid.org/0000-0003-3575-1712Cosmin-Octavian Cepoi1https://orcid.org/0000-0002-5529-4339Crina Raluca Petrescu 2https://orcid.org/0000-0002-8934-455XMariana Vuță3https://orcid.org/0000-0002-1165-4021Bucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaIn this paper, we investigate how climate risk impacts the sovereign risk, the stock market evolution, and the degree of competitiveness, starting from the macroeconomic and financial effects globally produced by climate change. Using both quantile and logistic regression and a sample of 22 countries, of which 16 EU members and 6 OECD members, during the 2008-2019 period, the results highlight a negative relationship between climate risks and the evolution of stock market capitalization as a percentage of GDP. Moreover, the climate risk leads to an increase in sovereign risk only across inferior quantiles, i.e., when the CDS level is small. In addition, based on a logit regression model, we show that the level of competitiveness of a country is influenced to a small extent by the level of climate risk. This could be a consequence of concerns among authorities and companies in each country willing to implement development strategies to achieve the goals proposed by the European Green Pact and standardization of the global price of CO2.https://www.amfiteatrueconomic.ro/temp/Article_3130.pdfclimate risk indexstock market capitalisationsovereign riskglobal competitivityquantile regressionlogistic regression |
| spellingShingle | Teodora Cristina Barbu Cosmin-Octavian Cepoi Crina Raluca Petrescu Mariana Vuță The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach Amfiteatru Economic climate risk index stock market capitalisation sovereign risk global competitivity quantile regression logistic regression |
| title | The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach |
| title_full | The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach |
| title_fullStr | The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach |
| title_full_unstemmed | The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach |
| title_short | The Assessment of Climate Risk Impact on the Economy: A Panel Data Approach |
| title_sort | assessment of climate risk impact on the economy a panel data approach |
| topic | climate risk index stock market capitalisation sovereign risk global competitivity quantile regression logistic regression |
| url | https://www.amfiteatrueconomic.ro/temp/Article_3130.pdf |
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