 Effect of weather and environmental attentions on financial system risks: Evidence from Chinese high- and low-carbon assetsXiyong Dong and Seong-Min Yoon Energy Economics, 2023, vol. 121, issue C Abstract: Physical and transition risks from climate change have potential impacts on financial markets. This study investigates systemic risks between high- and low-carbon assets and other sector assets and explores the effects of various weather and environmental factors on the financial systemic risks by employing the TENET and DMA models. We find that smaller results for systemic and spillover risks of high- and low-carbon assets will be obtained if weather and environmental attention are considered in the model. More importantly, weather and environmental attention influence the systemic risks of high- and low-carbon assets in different ways. Increased weather attention causes a decline (rise) in the risk spillovers of high-carbon (low-carbon) assets, while increased environmental attention leads to a rise (decline) in the risk spillovers of high-carbon (low-carbon) assets. Moreover, the impact of weather and environmental attention on systemic risks gradually weakened over time. Keywords: Climate change; Systemic risks; Weather and environmental attentions; Different carbon footprint assets (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:121:y:2023:i:c:s0140988323001780 DOI: 10.1016/j.eneco.2023.106680 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.