Two new European studies show climate change creates larger productivity losses than expected while revealing stark differences between firms. Low-productivity companies face devastating losses from extreme temperatures, while some high-productivity firms actually benefit, challenging assumptions about uniform climate impacts across the economy.

Extreme climate events such as heatwaves, droughts, and floods are found to have substantial and persistent negative impacts on regional economic output in Europe, with these effects differing by event type, region characteristics, and income level, as shown by both medium-term econometric analyses and panel data approaches.

New scholarly research from MIT, Harvard, University of Reading, and the ECB reveals that the Net Zero Banking Alliance—once representing 40% of global banking assets—was doomed from the start, with rigorous academic studies proving that voluntary climate commitments produced no meaningful reduction in fossil fuel financing while banks enjoyed improved ESG ratings for unfulfilled  promises.

New research shows that both the stringency of national climate policies and spikes in global climate news coverage significantly influence international capital allocation and currency movements.

Recent research reveals that while adaptation can significantly reduce climate damages, it comes with economic costs and requires coordinated, equity-focused policy action to be most effective.

Two recent studies shed light on the impact of corporate environmental commitments against a constrained climate policy and carbon price uncertainty on  decarbonization efforts.

Two recent papers develop economic models to analyze how climate transition risks affect energy prices, firm valuations, and macroeconomic outcomes. The studies highlight that different types of transition risks can have distinct and sometimes counterintuitive effects on energy markets and the broader economy.

Recent research explores the growing challenges in the insurance market as climate change intensifies leading to information asymmetries among insurers in setting premiums in high-risk areas.

Two recent studies examine the impact of rising temperatures on manufacturing activity in the United States and how the firms’ adaptation strategies affect industry dynamics.

Two critical papers addressing the pressing challenges of climate change and sovereign debt sustainability. While the first paper reviews the complex relationship between climate impacts and public debt dynamics,  the second paper proposes an alternative framework to incorporate climate considerations into fiscal policy design.