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(Reference retrieved automatically from Web of Science through information on FAPESP grant and its corresponding number as mentioned in the publication by the authors.)

Impact of climate on firm value: Evidence from the electric power industry in Brazil

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Author(s):
Lucas, Edimilson Costa [1] ; Mendes-Da-Silva, Wesley [2, 3]
Total Authors: 2
Affiliation:
[1] Univ Fed Sao Paulo, EPPEN, Rua Angelica 100, BR-06110295 Osasco, SP - Brazil
[2] Fundacao Getulio Vargas FGV EAESP, Sao Paulo Sch Business Adm, Rua Itapeva 474, BR-01332000 Sao Paulo, SP - Brazil
[3] Univ Texas Austin 2815, Inst IC2, San Gabriel St, Austin, TX 78705 - USA
Total Affiliations: 3
Document type: Journal article
Source: ENERGY; v. 153, p. 359-368, JUN 15 2018.
Web of Science Citations: 1
Abstract

The finance literature has documented efforts to assess the economic impacts of climate on the global economy. However, the literature regarding empirical evidence from the energy sector is limited, particularly at the firm level. Therefore, this study assesses the impact of climate variables, i.e., temperature, rainfall, and localization, on the value of energy distribution companies. We used a unique dataset from a representative emerging market where hydropower plants are the most relevant source of energy. Based on static and spatial panel data analysis, the findings suggest that temperature and rainfall have a significant effect on the value of these companies. These results highlight the need for investments to ensure the resilience of the infrastructure of the energy sector and the operational efficiency of these companies against possible risks posed by climate variables. (C) 2018 Elsevier Ltd. All rights reserved. (AU)

FAPESP's process: 14/26003-9 - Financial innovation for natural disaster risk management in Brazil
Grantee:Wesley Mendes-Da-Silva
Support Opportunities: Research Program on Global Climate Change - Regular Grants