Giacomo De Giorgi (University of Geneva)

“Climate Risk is Households’ Financial Risk”

Abstarct. Extreme weather events are believed to be on the rise and a potential source for a next global crisis (UN 2018). We find that climate risk also has a direct, immediate, and long-lasting impact on households’ financial risk. We find that natural disasters negatively impact households in the credit and labor market using a 1% sample of the US population with valid credit scores for the period 2005-2016. We then find that a simple spatial model can account for a large part of the effects.