Climate laws and financial stability

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-09-29 DOI:10.1016/j.ribaf.2025.103151

Hanan Alkatheeri, Charilaos Mertzanis, Ilias Kampouris

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Abstract

We examine the impact of climate laws on financial stability, addressing a key but underexplored aspect of financial regulation. As climate risks intensify, climate laws variously mandate that financial institutions, markets and regulators integrate climate risk considerations into their stability frameworks. Using panel data from 92 countries during 2013–2020 and employing fixed-effects regression, instrumental variable estimation, and propensity score matching, the analysis finds that stronger climate law implementation enhances financial stability by reducing systemic risks, credit defaults, and market distortions. However, the effectiveness of climate regulations varies based on the nature of regulations, institutional strength, financial market depth, and enforcement mechanisms. The findings contribute to the growing discourse on climate-aligned financial regulation, providing empirical evidence on how climate laws function as macroprudential tools. This study offers policy-relevant insights for regulators, central banks, and financial institutions, emphasizing the need for comprehensive enforcement strategies to maximize the financial stability benefits of climate policies.

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气候法和金融稳定

我们研究了气候法对金融稳定的影响，解决了金融监管中一个关键但未被充分探索的方面。随着气候风险的加剧，气候法要求金融机构、市场和监管机构将气候风险考虑因素纳入其稳定性框架。利用2013-2020年来自92个国家的面板数据，并采用固定效应回归、工具变量估计和倾向得分匹配，分析发现，加强气候法的实施可以通过减少系统性风险、信用违约和市场扭曲来增强金融稳定。然而，气候法规的有效性因法规的性质、制度强度、金融市场深度和执行机制而异。这些发现为气候相关金融监管的讨论做出了贡献，为气候法如何发挥宏观审慎工具的作用提供了经验证据。本研究为监管机构、中央银行和金融机构提供了与政策相关的见解，强调需要制定全面的执行战略，以最大限度地发挥气候政策对金融稳定的好处。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance