We examine the nuanced relationship between financial inclusion and happiness, emphasizing on the mediating role of financial resilience. Using data across three domains from the Global Findex and the Household Financial and Consumption Survey we investigate the mechanisms through which access to finance affects life satisfaction at various levels. At the country level, our findings indicate that it associates with a 17.1%-21.7% increased levels of reported life satisfaction, with even higher gains (27.8%-32%) among financially vulnerable populations. At the household level, data from 17 European Union countries reveal that access to formal finance enhances life satisfaction by 9.8 to 23.3 percentage points, with credit access playing a significant role. At the individual level, data from the latest Global Findex show that access to credit reduces financial stress by 5.6 to 14 percentage points. Our results highlight that financial resilience, particularly through formal sources of emergency funds, strengthens the positive effects of financial inclusion on reducing financial stress and improving well-being. This study contributes to understanding how financial inclusion mechanisms enhance life satisfaction by examining the critical role of financial resilience.

We assess the impact of Borrower-Based Measures (BBMs) frameworks on household macroeconomic indicators across a panel of European countries from 1995 to 2021. To derive causal estimates of the Average Treatment Effect on the Treated (ATT), we employ the staggered Difference-in-Differences (DiD) estimation method proposed by Callaway and Sant’Anna (2021). Our results indicate that the introduction of BBMs is associated with a significant decline in the growth rate of house prices and house-price-to-income ratios (-7 pp), as well as a reduction in household credit growth (-5 pp). The peak of the effect occurs between 7 and 10 quarters, and reverts back around three years from introduction. We are unable to find effects on home ownership or private credit growth.

This paper investigates the investment behaviors of households in Türkiye, focusing on the impact of demographic factors such as age, gender, education. Utilizing micro data from the 2019 Household Financial Perception and Attitude Survey (HFPAS), we analyze how these factors influence investment choices, risk tolerance, and savings attitudes. The Turkish context, with its diverse population and evolving financial markets, provides a unique setting for this analysis. The analysis reveals that women, divorced and married asset owners are more likely to invest in low-risk assets compared to men, and single individuals who are more inclined towards high-risk investments, which aligns with findings that women are generally more risk-averse. Additionally, the likelihood of investing in low-risk assets increases with home ownership but declines as financial conditions worsen, while higher social and economic status boosts low-risk investment probability. Conversely, individuals with vocational school and university degrees are more inclined towards average and high risk investments, though larger household sizes tend to reduce the likelihood of investing in risky assets possibly due to the increased financial responsibilities and associated risks. Our findings offer valuable insights for policymakers, financial market participants, and academics, highlighting the importance of targeted financial education programs to enhance financial literacy and promote informed decision-making across different demographic segments.

This study investigates the dynamic and nonlinear propagation of systemic risk across global environmental and energy sectors using time-varying parameter vector autoregression (TVP-VAR) and quantile vector autoregression (QVAR) models. Employing data from eight indices representing global environmental, ecological, green energy, and brown energy markets, we examine how systemic risk transmission varies under bearish, normal, and bullish market conditions. The results reveal that environmental and ecological markets consistently act as net transmitters of systemic risk, while energy markets, encompassing both green and brown sectors, primarily serve as net receivers. Both climate transition and physical risk significantly influence systemic risk across environmental, ecological, green energy, and brown energy markets, with notable variations contingent on market conditions. Climate transition risk exerts a stronger influence on systemic risk than climate physical risk, particularly during extreme market conditions. The magnitude of climate transition risk is consistently higher across different quantiles of systemic risk. The nonlinear impacts of climate risks on systemic risk emphasize the potential of green swan to exacerbate systemic vulnerabilities of environmental and energy sectors, particularly under conditions of heightened market stress. The study underscores the urgent need for adaptive risk management frameworks to address transition uncertainty in green energy markets and the risk of stranded assets in brown energy markets. By providing actionable insights for policymakers, investors, and risk managers, this study contributes to a deeper understanding of how climate risks shape systemic risk dynamics across environmental and energy sectors, paving the way for more resilient and sustainable financial systems.

This paper examines the impact of climate-driven disasters on commodity prices. Using extensive archival sources including census data and declassified CIA intelligence reports, I develop a global geospatial dataset to identify the locations of key commodity-producing sites at subnational level since the 1970s. By linking these regions to climate disaster events, I find that, over time, production has become increasingly concentrated in high-risk areas. Leveraging this dataset, I analyze how commodity futures respond to climate-driven shocks and uncover significant cross-sectional differences. Specifically, a long-only portfolio of vulnerable commodities yields a significant monthly alpha of 0.90%, whereas that of resilient commodities, albeit still significant, is negative at -0.43%, reflecting a premium paid for protection against climate shocks. Furthermore, I find that vulnerable commodities experience slower recoveries from past shocks.

This study examines how firms adjust their inventory levels in response to climate risks. Using a large dataset, the research finds that firms tend to increase inventory levels as a precaution against climate-related disruptions, especially in countries with organised labour and high product market differentiation. Conversely, firms with strong environmental policies and greater climate risks awareness are more likely to reduce inventory levels. The relationship between climate risk and inventory management has intensified since the Paris Climate Agreement, particularly for firms with high agency costs, labour-intensive operations, or growth/maturity phases. The study provides valuable insights into corporate risk management and contributes to the literature on climate risk and managerial accounting regarding inventory based strategies.

The introduction of the EU Carbon Border Adjustment Mechanism (CBAM) has triggered statistically significant negative stock market responses for firms within the EU. Comparing EU customers that have non-EU suppliers in CBAM-affected industries with their nontreated peers in the control group, we find an extra cumulative abnormal return of up to -1.3 percentage points over our main five-day event window around December 13, 2022. Furthermore, we document substantial anticipatory market responses reflecting updated beliefs about broader climate policy developments going forward. This paper is the first to provide empirical evidence of carbon border tax impacts on firm valuations through international supply chains. Our findings contribute to the understanding of climate policy transmission through international trade networks and inform the debate on stranded assets resulting from environmental regulations.