Climate Shocks and Systemic Risks in the Real Economy
DOI:
https://doi.org/10.62051/aet56118Keywords:
Climate shocks; Systemic risks in the real economy; Financial distress; ESG; Transition risks.Abstract
As global warming becomes increasingly severe,frequent extreme weather events and the accelerated transition to a low-carbon economy have made climate shocks a significant factor affecting the operation of the real economy and the stability of financial markets.This paper uses data from Chinese A-share listed companies from 2007 to 2024 as the initial research sample to empirically examine the impact of climate shocks on the systemic risk of real enterprises.The study finds that climate shocks significantly increase corporate systemic risk,and this conclusion remains valid after a series of robustness tests.Mechanism analysis indicates that climate shocks amplify systemic risk by exacerbating financial distress,reducing production efficiency,and worsening information asymmetry.Heterogeneity analysis shows that green finance reforms,climate finance innovations,and green fiscal policies effectively mitigate the adverse transmission of climate shocks to corporate systemic risk by alleviating information asymmetry,providing risk hedging tools,and enhancing corporate resilience.Moderation analysis reveals that ESG performance significantly mitigates the positive impact of climate risk on corporate systemic risk.This risk-mitigating effect primarily stems from substantial contributions from the environmental (E) and governance (G) dimensions,while the social (S) dimension plays a negligible role.Further analysis indicates that the upward pressure of climate risk on systemic risk in the real economy is primarily driven by transition risk,with the impact of physical risk being relatively limited.These findings align with the logic that climate shocks ultimately elevate systemic risk by deteriorating corporate operations and financial conditions and exacerbating risk transmission.This conclusion provides theoretical references and practical insights for regulators to improve climate risk prevention and control systems,guide enterprises in proactively managing climate risks,and guard against systemic financial risks.
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