Extreme weather caused by climate risks bring serious uncertainty to the economy. We use soil moisture data from satellite readings to study the impacts of climate risks on profitability change of food industry and to test if the capital market is efficient. We find that the profitability...

The negative effects of climate change have begun to exceed expectations and are likely to intensify. This paper studies the effects of the agricultural risk and the insurance on agricultural economy in the context of climate change. First, this paper establishes the model incorporating with the...

Whether the agricultural insurance has positive impacts on the primary industry has been debated for decades of years. This paper studies this question based on the policy-based agricultural insurance implementation in 2007 in China. We conduct difference in difference analysis and event study...

This paper finds evidence that stock returns vary with the physical climate change exposure of firms in a predictable manner. We construct measures of exposures to physical climate changes at the firm level, and find that firms with high climate change exposures experience lower future...

This paper studies the economic impacts of cyclones and the adaptation responses to cyclone impacts in China. We measure cyclones as arrivals of disasters in the spirit of Barro (2009) and Pindyck and Wang (2013). Using county-level economic data in China, we find that cyclones striking the...

Households hold nondiversified stock portfolios of firms headquartered near their city of residence. Explanations assign a causal role for proximity, either in generating an informational advantage or a familiarity bias. Empirical analyses assume households locate randomly, even though they...

Climate science finds that the trend towards higher global temperatures exacerbates the risks of droughts. We investigate whether the prices of food stocks efficiently discount these risks. Using data from thirty-one countries with publicly-traded food companies, we rank these countries each...