Climate Risk and Financial Instability in Asia-Pacific

Abstract

In this study, we estimate the effect of climate risk on financial instability in a panel of four developed Asia-Pacific countries from 2001Q1 to 2020Q4. The empirical results show that climate risk leads to a reduction in financial instability, but not significantly. This effect becomes more significant when mean deviation is used as a measure of financial instability.

Climate Policy Uncertainty and Crude Oil Market Volatility

“…Corresponding author email: adebare1@yahoo.com There are recent papers examining the connection between climate risks and financial markets (see Akpa et al, 2022;Lasisi et al, 2022;Oloko et al, 2022).…”

Persistence of Green Asset Returns, Fossil Fuel Returns, and Climate Policy Uncertainty

“…Studies into the effects of climate policy uncertainty on fossil fuel and green asset investment exist (Akpa et al, 2022;Jin et al, 2020;Lasisi et al, 2022;Nasreen et al, 2020;Oloko et al, 2022); however, there are few studies that investigate the persistence of fossil fuel returns, green asset investment returns, and climate policy uncertainty.…”