Transition Risk & Financial Stability
The increasing frequency of extreme weather events in Canada has caused the annual payouts for catastrophic insurance claims to skyrocket, according to a recent Statistics Canada report. This is but one small piece of a global picture emerging, where extreme weather events are causing homeowner insurance to increase at a rate higher than inflation. In the worst case, climate change will cause insurance companies to go bankrupt and homeowners will have nowhere to turn. “Transitions happen shock-wise and are systemic,” said Dirk Schoenmaker, Professor at the Rotterdam School of Management. “What can we do to reduce transition risk?” He was speaking at a webinar […]
Global vs. Local Temperature
How often have you heard someone scoff at the changing global temperature? “A two-degree increase? Heck, it changes by twenty degrees some days—and I don’t complain,” they say with a laugh. “Is local temperature an incomplete representation of climate change?” asked Adrien Bilal, Assistant Professor of Economics, Stanford University. He posed the question at a webinar on October 3, 2024, which was part of a series of talks, the Virtual Seminar on Climate Economics, sponsored by the Federal Reserve Bank of San Francisco. The global average temperature has been increasing over the time period 1950 to 2020 (data from National Oceanic […]