ECONOMETRICS HUB
Climate econometrics
for risk, valuation,
and decision intelligence
Measurement and Estimands: From Climate Questions to Econometric Estimands
Direct Answer An econometric estimand is the quantity a climate analysis is designed to learn. It may be the average effect of an additional extreme-heat day on asset downtime, the expected loss...
ECONOMETRICS HUB
Downside Performance and Heterogeneous Effects: Estimating the Appreciation-at-Risk Ratio
Direct Answer The Appreciation-at-Risk Ratio compares expected climate loss with expected asset appreciation over the same horizon. A ratio below one means projected appreciation exceeds modeled...
Climate-Adjusted Valuation: Estimating Net Climate-Adjusted Appreciation and Returns
Direct Answer Net Climate-Adjusted Appreciation Value subtracts asset CvaR from forecast gross appreciation. Climate-Adjusted Appreciation Rate divides the resulting net amount by the starting...
Climate-Adjusted Valuation: Estimating Climate-Adjusted Ending Portfolio Value
Direct Answer Climate-Adjusted Ending Portfolio Value combines the reference ending value with an explicit climate-loss adjustment. In the catalog, each asset's projected ending value is reduced by...
Climate-Adjusted Valuation: Aligning Forecast Horizons, Discounting, and Climate Loss
Direct Answer Climate-adjusted valuation requires the growth forecast and climate loss estimate to refer to compatible horizons, currencies, price dates, and economic concepts. A cumulative expected...
Climate-Adjusted Valuation: Forecasting Expected Ending Portfolio Value
Direct Answer Expected Ending Portfolio Value is the no-additional-climate-loss baseline against which climate-adjusted outcomes are compared. It applies each asset's appreciation assumption to its...
Climate-Adjusted Valuation: Estimating Appreciation Rates and Compound Growth
Direct Answer Horizon Gross Appreciation Value compounds an asset's assumed appreciation rate over the selected horizon before applying climate loss. The formula is straightforward, but the rate...
Causal Econometrics of Adaptation: Constructing Counterfactuals With Matching and Synthetic Controls
Direct Answer Matching and synthetic controls construct comparison outcomes when randomized treatment is unavailable. Matching pairs treated assets with untreated assets with similar observed...
Causal Econometrics of Adaptation: Evaluating Threshold-Based Programs With Regression Discontinuity
Direct Answer Regression discontinuity estimates a local adaptation effect when treatment, funding, insurance, or regulation changes at a known threshold. Assets directly above and below the cutoff...
Causal Econometrics of Adaptation: Addressing Adaptation Endogeneity With Instrumental Variables
Direct Answer Instrumental variables can estimate adaptation effects when treatment is correlated with unobserved risk, management quality, or expected loss. A valid instrument must meaningfully...
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