Climate Risk and Systemic Risk Contagion:Empirical Evidence from China's Listed Financial Institutions
Based on the micro-data of 51 listed financial institutions in China from 2011 to 2021,this paper constructs a systemic risk transmission network among financial institutions,and empirically studies the impact of climate risk on systemic risk transmission among financial institutions and the transmission path from the micro-level.The result shows that under climate risk events,the net-work among financial institutions is more closely related and the level of systemic risk transmission among them is significantly increased.Climate risk increases the level of systemic risk contagion a-mong financial institutions,mainly by increasing investor panic.Compared with large financial in-stitutions,small and medium-sized financial institutions have a higher level of systemic risk output and risk input under the impact of climate risk.The increase of economic policy uncertainty will fur-ther aggravate the negative impact of climate risk on financial institutions.The proposal of the Paris Agreement will alleviate the negative impact of physical risk on the transmission of systemic risk a-mong financial institutions,but to some extent,it will increase the negative impact of transforma-tion risk on the transmission of systemic risk among financial institutions.This study provides policy inspiration and decision-making reference for preventing climate-related financial risks and maintaining the stability of the financial system.
NETL
NSTL
万方数据
