Climate finance

Miguel A. Ferreira

doi:10.1007/978-3-030-99468-6_7

Climate finance

Miguel A. Ferreira

NOVA School of Business and Economics (NOVA SBE)

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

1 Citation (Scopus)

Abstract

We estimate the supply side effect of climate change on firm sales by exploiting variation in local temperature across suppliers of the same client. We find that suppliers experiencing a 1 °C increase in average daily temperature decrease their sales by 2%. In addition, extreme hot and cold weather events lead to larger drops in sales. The effect is more pronounced among suppliers in manufacturing and heat-sensitive industries, which is consistent with lower labor productivity and labor supply when temperatures are higher. Financially constrained suppliers are more affected due to their lack of financial flexibility to adapt to changes in temperatures.

Original language	English
Title of host publication	The Palgrave Handbook of ESG and Corporate Governance
Editors	Paulo Câmara, Filipe Morais
Publisher	Springer International Publishing
Chapter	7
Pages	137-147
ISBN (Electronic)	978-3-030-99468-6
ISBN (Print)	978-3-030-99467-9
DOIs	https://doi.org/10.1007/978-3-030-99468-6_7
Publication status	Published - 29 Jun 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/978-3-030-99468-6_7

https://link.springer.com/10.1007/978-3-030-99468-6_7

Cite this

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title = "Climate finance",

abstract = "We estimate the supply side effect of climate change on firm sales by exploiting variation in local temperature across suppliers of the same client. We find that suppliers experiencing a 1 °C increase in average daily temperature decrease their sales by 2%. In addition, extreme hot and cold weather events lead to larger drops in sales. The effect is more pronounced among suppliers in manufacturing and heat-sensitive industries, which is consistent with lower labor productivity and labor supply when temperatures are higher. Financially constrained suppliers are more affected due to their lack of financial flexibility to adapt to changes in temperatures.",

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Climate finance

Abstract

UN SDGs

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