Climate finance

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


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 languageEnglish
Title of host publicationThe Palgrave Handbook of ESG and Corporate Governance
EditorsPaulo Câmara, Filipe Morais
PublisherSpringer International Publishing
ISBN (Electronic)978-3-030-99468-6
ISBN (Print)978-3-030-99467-9
Publication statusPublished - 29 Jun 2022


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