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S5 Ep46: How does climate change affect asset prices?

VoxTalks Economics

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Heat Stress Risk in the United States

C-glass and 427 are aggregate measures. We do have their individual decomposition, say in case of C-glass into losses due to worker productivity and losses due to energy consumption needs. And we find that these two do show up quite significantly. So for example, you could have sectors which are more exposed like mining construction and farming versus less exposed sectors such as financials or services. Those are not as exposed to these risks. The effects are stronger in the sectors where the worker productivity is more likely to be affected.

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