Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Working Paper
Unequal Climate Policy in an Unequal World
Hur, Sewon; Carroll, Daniel R.; Belfiori, Elisa (2025-01-31)
We study climate policy in an economy with heterogeneous households, two types of goods (clean and dirty), and a climate externality from the dirty good. Using household expenditure and emissions data, we document that low-income households have higher emissions per dollar spent than high-income households, making a flat carbon tax regressive. We build a model that captures this fact and study climate policies that are neutral with respect to the income distribution. We show that the constrained optimal carbon tax in a heterogeneous economy is heterogeneous: Higher-income households face a ...
Globalization Institute Working Papers , Paper 427

Working Paper
Climate Shocks in the Anthropocene Era: Should Net Domestic Product Reflect Climate Disasters?
Nakamura, Leonard I.; Sliker, Brian (2025-01-07)
The asset costs of natural disasters in the United States grew rapidly from 1980 to 2023, with the trend rising 4.9 percent annually in real terms to $90 billion in 2023. Much of this trend in costs is likely due to climate change and, as a loss of assets, implies a faster depreciation of real assets. We argue that the expected depreciation from these events should be included in Consumption of Fixed Capital (CFC), leading to lower levels and slightly lower growth rates for Net Domestic Product (NDP) and Net Domestic Investment. We use Poisson pseudo-maximum-likelihood regressions to estimate ...
Working Papers , Paper 25-01

Working Paper
How Climate Change Shapes Bank Lending: Evidence from Portfolio Reallocation
Meisenzahl, Ralf R. (2023-03-30)
I document how bank lending has changed in response to climate change by analyzing changes in bank loan portfolios since 2012. Using supervisory data providing loan-level portfolios of the largest U.S. banks, I find that banks significantly reduced lending to areas more impacted by climate change starting around 2015. Using flood risk and wildfire risk as proxies for climate risk, I estimate a one standard deviation increase in climate risk reduces county-level balances in banks’ portfolios by up to 4.7 percent between 2014 and 2020 in counties with large loan balances. The aggregate trend ...
Working Paper Series , Paper WP 2023-12

Working Paper
Understanding Climate Damages: Consumption versus Investment
Gibson, Matthew; Fried, Stephie; Casey, Gregory (2022-10-04)
Existing climate-economy models use aggregate damage functions to model the effects of climate change. This approach assumes climate change has equal impacts on the productivity of firms that produce consumption and investment goods or services. We show the split between damage to consumption and investment productivity matters for the dynamic consequences of climate change. Drawing on the structural transformation literature, we develop a framework that incorporates heterogeneous climate damages. When investment is more vulnerable to climate, we find short-run consumption losses will be ...
Working Paper Series , Paper 2022-21

Working Paper
Snow Belt to Sun Belt Migration: End of an Era?
Leduc, Sylvain; Wilson, Daniel J. (2024-07-15)
Internal migration has been cited as a key channel by which societies will adapt to climate change. We show in this paper that this process has already been happening in the United States. Over the course of the past 50 years, the tendency of Americans to move from the coldest places (“snow belt”), which have become warmer, to the hottest places (“sun belt”), which have become hotter, has steadily declined. In the latest full decade, 2010-2020, both county population growth and county net migration rates were essentially uncorrelated with the historical means of either extreme heat ...
Working Paper Series , Paper 2024

Briefing
Pricing and Mispricing of Climate Risks in U.S. Financial Markets
Phan, Toan (2021-12)
There is a rapidly growing research literature studying the effects of climate change risks on financial markets. Recent evidence suggests that markets have started to price climate risks. However, the extent of pricing varies across markets and time, and there is evidence of potential market inefficiencies. This article will highlight some key findings and their policy implications.
Richmond Fed Economic Brief , Volume 21 , Issue 41

Discussion Paper
Climate Change and Financial Stability: The Weather Channel
Blickle, Kristian S.; Morgan, Donald P. (2022-04-04)
Climate change could affect banks and the financial systems they anchor through various channels: increasingly extreme weather is one (Financial Stability Board, Basel Committee on Bank Supervision). In our recent staff report, we size up this channel by studying how U.S. banks, large and small, fared against disasters past. We find even the most destructive disasters had insignificant or small effects on bank stability and small and positive effects on bank income. We conjecture that recovery lending after disasters helps stabilize larger banks while smaller, local banks’ knowledge of ...
Liberty Street Economics , Paper 20220404

Report
Banks versus Hurricanes: A Case Study of Puerto Rico after Hurricanes Irma and Maria
Anagnostakos, Peter; Bram, Jason; Chan, Benjamin; Fischl-Lanzoni, Natalia; Latif, Hasan; Mahoney, James M.; Morgan, Donald P.; Morgan, Ladd; Suarez, Ivelisse (2023-11-01)
We study Puerto Rico’s experience after the severe hurricane season of 2017 to better understand how extreme weather disasters affect bank stability and their ability to lend. Despite the devastation wrought by two category 5 hurricanes in a single month, we find relatively modest and transitory impacts on bank performance with no evident decline in lending capacity. We discuss various mitigants that help limit bank exposure to extreme weather and whether these mitigants may be vulnerable given the potential for more severe and more impactful climate events.
Staff Reports , Paper 1078

Discussion Paper
Flood Risk Outside Flood Zones — A Look at Mortgage Lending in Risky Areas
Blickle, Kristian S.; Perry, Evan; Santos, João A. C. (2024-09-25)
In support of the National Flood Insurance Program (NFIP), the Federal Emergency Management Agency (FEMA) creates flood maps that indicate areas with high flood risk, where mortgage applicants must buy flood insurance. The effects of flood insurance mandates were discussed in detail in a prior blog series. In 2021 alone, more than $200 billion worth of mortgages were originated in areas covered by a flood map. However, these maps are discrete, whereas the underlying flood risk may be continuous, and they are sometimes outdated. As a result, official flood maps may not fully capture the true ...
Liberty Street Economics , Paper 20240925

Working Paper
Climate Shocks in the Anthropocene Era: Should Net Domestic Product Be Affected by Climate Disasters
Nakamura, Leonard I.; Sliker, Brian (2023-10-30)
The monetary costs of weather and climate disasters in the U.S. have grown rapidly from 1980 to 2022, rising more than 5 percent in real terms annually. Much of this real growth in costs is likely due to climate change. Regardless of its cause, these costs imply a faster depreciation of real assets. We argue that the expected depreciation from these events could be included in the consumption of fixed capital, leading to lower levels, and slightly lower growth rates, for net domestic product (NDP). We use Poisson pseudo-maximum-likelihood regressions to estimate this expectation and to ...
Working Papers , Paper 23-24

show more (1)

show more (69)

PREVIOUS / NEXT

Fed in Print

Search Results

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

FILTER BY Keywords