Climate risks and economic activity in France: Evidence from media coverage

Oussama Houari, Hamza Bennani and Quentin Bro de Comères

Journal of International Money and Finance, 2025, vol. 155, issue C

Abstract: This study investigates the impact of climate risks on economic activity in France. Using natural language processing methods on three major French newspapers (Le Monde, Les Echos, and Le Figaro) from 2000 to 2023, we construct a measure of climate risks that we disentangle into physical and transition-risk components. Our findings highlight several transmission channels through which climate risks affect the economy: the business cycle channel, the precautionary savings channel, the inflation channel, and the banking/credit channel. Moreover, while we document the existence of heterogeneous responses to our measures of physical and transition risks, we find that the tone of media coverage of climate risks matters beyond the frequency of published articles. These results remain robust to newspapers’ political slant and ruling political parties’ orientation. Finally, the impact of climate risks also depends on the stringency of environmental policies, with more lenient policies leading to a stronger sensitivity of our economic and financial variables to the media-related climate risk index.

Keywords: Climate risks; Natural language processing; Local projections (search for similar items in EconPapers)
JEL-codes: C32 E32 Q54 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560625000750
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Climate risks and economic activity in France: Evidence from media coverage (2025)
Working Paper: Climate Risks and Economic Activity in France: Evidence from Media Coverage (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:155:y:2025:i:c:s0261560625000750

DOI: 10.1016/j.jimonfin.2025.103340

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().