 How are climate risk shocks connected to agricultural markets?Kun Guo, Yichong Li, Yunhan Zhang, Qiang Ji and Wanli Zhao Journal of Commodity Markets, 2023, vol. 32, issue C Abstract: In the climate-sensitive agricultural sector, product prices are particularly susceptible to climate risks. In this study, we constructed three novel climate risk perception indices—a climate policy uncertainty index, a climate physical risk index, and a climate concern index—using natural language processing and text mining to investigate their differential effects on bulk agricultural prices. The findings indicate that the responses of agricultural product prices to climate risk perceptions are more pronounced in the short term than in the long term. Moreover, the impacts of climate-related concerns and physical risks have stronger impacts than climate policy uncertainty. The dynamic analysis results also indicate that climate-related events have a great impact on investors and financial markets. Overall, the findings suggest that climate risk perceptions have become a significant factor in agricultural product price changes, which has important implications for policy regulators and market investors. Keywords: Climate risks; Bulk agricultural prices; Text-mining; Connectedness (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:jocoma:v:32:y:2023:i:c:s2405851323000570 DOI: 10.1016/j.jcomm.2023.100367 Access Statistics for this article Journal of Commodity Markets is currently edited by Marcel Prokopczuk, Betty Simkins and Sjur Westgaard More articles in Journal of Commodity Markets from Elsevier |
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