Assessing the role of Environmental Legislation in Mitigating Climate Risk in GCC: A quantile ARDL approach

Climate change has been identified as one of the biggest challenges of our time and the impacts of global warming are becoming increasingly notable and damaging. As a result, the Intergovernmental Panel on Climate Change urges for drastic actions to address and mitigate climate risk. This is highly relevant for the tourism industry which has been identified as a sustainable development option and which provides important economic activity to destinations globally, including many small island developing states, such as Vanuatu. Yet, tourism is highly vulnerable to the impacts of climate change, while at the same time contributing to global greenhouse gas emissions. For tourism to deliver on its development promise under a changing climate, climate risk to destinations and how it can be reduced needs to be better understood. To address this need, this thesis aims to understand what role tourism can play to reduce climate risk to the wider destination. The relevance of climate change is not new to the tourism literature, and there is evidence that tourism businesses are already coping with changes in their environment. Yet actions to address climate risk are often reactionary without the consideration of potential flow-on effects that may be created. This can be problematic, particularly in the South Pacific where tourism activity is highly integrated with local communities and the natural environment. For tourism to create benefits and reduce climate risk beyond the tourism businesses, the wider destination needs to be considered. However, our understanding of how different destination characteristics and elements link, interact, and change under increased climate risk and how flow-on effects between destination elements can themselves influence climate change remains limited. To address these gaps, this thesis applies general systems theory to advance our understanding of climate risk to destinations in Vanuatu, and to identify the systemic change that is required to collectively and holistically address climate change through tourism. A qualitative multi-stage research design was developed to first assess how academic, practical and political tourism and climate change knowledge is produced and how it can be enhanced to better inform the sector’s climate response. Following this literature review, the systems approach guides the development of the Vanuatu Tourism Adaptation System which identifies economic, socio-cultural, political, and environmental variables, how they interlink and thereby influencing climate risk to destinations in Vanuatu. Destination trade-offs are discussed and policy recommendations of how they may be reduced presented. Building on this systemic understanding of risk to Vanuatu destinations, the potential of Ecosystem-based Adaptation for tourism is empirically tested. Results highlight the potential this approach provides to reduce climate risk and contribute to destination well-being. A number of barriers to successful implementations were identified, and strategies presented of how to address those. To discuss the results and learnings of the empirical studies of this thesis, the concepts resilience and transformation, system characteristics linked to change, are critically reflected upon to develop seven leverage points for holistic climate risk reduction to Vanuatu destinations. Results of this thesis highlight the opportunity systems thinking provides to reduce climate risk to destinations. It can help enhance awareness, support collaboration to integrate projects and policies across sectors and inform the selection and implementation of climate risk reducing interventions in tourism. This thesis makes several significant theoretical and practical contributions. It contributes to our theoretical understanding of how tourism climate change knowledge is created, and to our systemic knowledge on climate risk to destinations. It thus advances systems approaches in tourism, including our understanding of destinations as social-ecological systems. Linking resilience to leverage points provides a novel way of assessing system change and provides insights into how to manage such change to reduce climate risk. In addition, this thesis provides practical recommendations for Vanuatu destinations relevant to decision makers at local, provincial and national level. It seeks to stimulate a different way of thinking about the means of tourism and how to address complex problems such as climate change more holistically.

Climate risk assessment has emerged as a critical component in the sustainability efforts of petroleum operations, given the increasing frequency and severity of climate-related events. This paper provides a comprehensive review of Corporate Social Responsibility (CSR) practices employed in the United States and Africa to enhance sustainable resilience in the face of climate risks within the petroleum industry. In the United States, where stringent environmental regulations and public scrutiny prevail, petroleum companies have adopted a range of CSR practices to assess and mitigate climate risks. These practices encompass comprehensive environmental impact assessments, carbon footprint reduction initiatives, and the integration of renewable energy sources into their operations. The paper explores how these CSR practices contribute to the overall resilience of petroleum operations in the United States. In contrast, Africa presents a diverse landscape with varying levels of regulatory frameworks and industrial practices. The paper delves into the unique challenges and opportunities faced by petroleum operations on the African continent in managing climate risks. It highlights the role of CSR practices in promoting sustainable development, community engagement, and ecosystem conservation as integral components of climate risk resilience. The review emphasizes the importance of a holistic approach to climate risk assessment, considering both the environmental and social dimensions of petroleum operations. It sheds light on the need for collaboration between industry stakeholders, governments, and local communities to develop effective CSR strategies that enhance resilience while fostering sustainable practices. By synthesizing insights from both the United States and Africa, this paper contributes to the global discourse on climate risk management in the petroleum industry. It underscores the significance of CSR practices as instrumental tools for achieving sustainable resilience and fostering a harmonious coexistence between petroleum operations and the environment in diverse geopolitical contexts.
 Keywords: Climate Risk, Risk Assessment, Petroleum, CSR, USA, Africa, Review.

Chinese heavy-polluting companies have been facing enormous challenges in responding to climate risk and energy transformation. This paper uses panel regression model and investigates the impact of climate risk on corporate green innovation in Chinese heavy-polluting listed companies from 2011 to 2020. The empirical results show that climate risk adversely affects green innovation in heavy-polluting companies, and this effect persists throughout a series of robustness and endogeneity tests. Climate risk may affect corporate green innovation through decreasing R&D investment, lowing resource allocation efficiency and increasing company risk. Climate risk has a greater negative impact on mid-western, state-owned and large-size heavy-polluting companies, but can be mitigated by the development of green finance, digital finance and marketization. These findings may help heavy-polluting companies fully utilize existing resources, policies, and channels for green innovation and mitigate climate risks.

Has the establishment of national key ecological function areas reduced climate risk?

Women in developing countries are disproportionately vulnerable to climate risks. The perception of these risks – which can vary by gender – shapes how people decide to adapt, which in turn drives how these risks are realised as impacts and consequences. This paper examines: (1) the differences of perception between women and men about climate risks; (2) if these differences can be explained by a variety of socio-economic factors; and (3) whether the gendered perception gap could be eliminated by a targeted communication intervention that informed participants about long-term climate risks in the region and was delivered by a local news weather anchor. We examined these questions through pre- and post-intervention surveys with 724 inhabitants of peri urban Can Tho, in Vietnam’s Mekong Delta. Results show that women were less familiar with climate risks in their community. The gendered perception gap was partially attributed to differences in education, livelihoods, and access to information. This gap was partially eliminated after the communication intervention, which suggests that a targeted communication intervention can enhance capacity to adapt to climate risks. This research provides valuable insights for climate communicators, especially for those working with non-WIERD populations, and can support adaptability for vulnerable populations.

High dependence on rain-fed agriculture impose smallholder farmers to a plethora of climate risks which are detrimental to agroecosystems and socio-economic status. Assessment of the impact of climate variability and change at farm level is key to developing suitable agro-advisories toward mitigating climate risks. Smallholder farmers in the semi-arid areas of South Africa are most vulnerable to heightened sensitivity to extreme weather events and inadequate exposure to adaptive capacity. The increasing pressures brought in by weather events, soil degradation, loss of biodiversity, increasing population is threatening food security and sustainable livelihoods. The study conducted a reconnaissance review with smallholder farmers from selected local municipalities in KwaZulu-Natal and Free State provinces. The purpose for this analysis was to determine local climate related challenges, gaps, shocks and barriers. The survey further, identified agricultural practices, climate risks, access to climate related advisories, access to other scientific knowledge and factors hindering sustainability, stability, and profitability. We further discussed the importance of drought in situ monitoring since drought was identified as the measure limiting factor to agricultural productivity. The existing challenge on the dissemination of scientific knowledge and the accessibility of agrometeorological application knowledge to smallholder farmers. Thus overcoming the constraints limiting the adoption of climate smart agriculture, weather and climate use, and minimise climatic risks and improve smallholder agricultural production.

This study empirically examines the impact of climate risk on both the quality and quantity of corporate green innovation, using meteorological data and financial information from Chinese A-share listed companies. The findings reveal that climate risk significantly inhibits both the quality and quantity of green innovation. This conclusion remains robust after replacing core variables, altering estimation methods, and addressing endogeneity concerns. Heterogeneity analysis indicates that the adverse effects of climate risk are more pronounced in non-state-owned enterprises, highly polluting industries, and non-patent-intensive sectors. Mechanistic tests show that climate risk reduces green innovation by diminishing R&D capital and labour investments. Conversely, it can improve innovation quality by raising public environmental awareness and strengthening government regulations. Based on these results, the study proposes policy recommendations to help mitigate climate risk and facilitate corporate green transformation and development.

Optimized sowing time windows mitigate climate risks for oats production under cool semi-arid growing conditions

This study provides a comprehensive synthesis of climate risk and financial stability literature through a systematic review and bibliometric analysis of 174 Scopus-indexed publications from 1988 to 2024. Publications increased by 500% from 1988 to 2019, indicating growing research interest following the 2015 Paris Agreement. It explores how physical and transition climate risks affect financial markets, asset pricing, financial regulation, and long-term sustainability. Common themes include macroprudential policy, climate disclosures, and environmental risk integration in financial management. Influential authors and key journals are identified, with keyword analysis showing strong links between “climate change”, “financial stability”, and “climate risk”. Various methodologies are used, including econometric modeling, panel data analysis, and policy review. The main finding indicates a shift toward integrated, risk-based financial frameworks and rising concern over systemic climate threats. Policy implications include the need for harmonized disclosures, ESG integration, and strengthened adaptation finance mechanisms.

Financial inclusion plays an important role in helping households manage risks, but its role in mitigating climate risks is unexplored. Access to formal financial institutions in regions with high climate risks increases households’ access to liquidity that they need to buffer against climate shocks. Using longitudinal data from 1082 rural households located in the semi-arid tropics in India, we find that households facing high climate risks hold a higher proportion of assets in liquid form. Access to formal financial services, however, reduces the need to keep liquid assets to be able to respond to high climate variability. Our results suggest that expanded financial inclusion in regions with high climate variability can reallocate resources held in unproductive liquid assets to invest in climate adaptation.

This study reviews how climate change could be considered an additional source of financial market risk using a bibliometric methodology. We find that the primary impetus for academics’ research into these concerns has come from significant international climate change events, e.g., the adoption of the Paris Climate Agreement. Ecological Economics, Energy Policy, and Energy Economics emerge as the major journals of the existing research output. The bibliographic coupling analysis of the corpus further reveals the existence of five major themes. The first theme evaluates the climate risk and explores mechanisms by which can financial risks be impacted by climate change. The second theme talks about the losses brought on by climate change. The third theme talks about how climate finance products, such as green bonds, green securities, and green insurance, are created and issued, as well as how they help to address and mitigate climate risks. The fourth theme examines how the current financial policy frameworks and instruments can be optimized and adapted in light of the considerable degree of uncertainty that surrounds climate change. The fifth theme discusses the climate-related financial risk modeling. We provide a summary of the development of these themes as well as the future direction to be explored.

Climate change poses major challenges to the global economy and society, requiring coordinated efforts to alleviate its impacts. Given the nature of climate change, the adoption of central bank policies offers a more holistic strategy for managing and mitigating climate risks, thereby bolstering the resilience of the financial system and the economy. This paper aims to explore the critical tasks of coping with climate risks and proposes an integrated central bank climate regulatory framework to foster sustainable economic growth, by exploring the transmission mechanisms of central bank policies to support the establishment of just transition targets. The framework delineates three essential strategies, namely: (i) data, tools, and research, (ii) regulation and supervision, and (iii) climate transition policy. This paper shows that the central bank’s climate policies to manage transition risks can navigate just transition and support the achievement of sustainable economic growth. The operationalization of these strategies extends beyond the traditional purview of centralbank activities, necessitating a collaborative and synergistic approach among regulators and industry stakeholders to guide the global economy toward sustainability.

With the ever-increasing need for corporate responsibility in mitigating climate risks, this paper aims to analyse the legal duties of directors and their role in climate risk mitigation. This is done by analysing the scope of the codified director duties in the context of climate change under the company law, securities regulations, and environmental regime. However, directors face challenges in understanding the nature of their legal obligations due to the systemic nature of climate change (Breitinger & Litvak, 2018). Against this backdrop, the paper attempts to analyse the scope and interpret the emergence of director duties through judicial pronouncements. The paper adopts doctrinal legal methodology involving a comprehensive review of relevant legal frameworks, including case law and legislative provisions in India. The paper suggests that such legal interventions may aid corporates in addressing climate change, which entails that directors must consider climate risks and conduct themselves accordingly. The paper concludes by discussing what measures corporations must take to help India progress towards becoming a low-carbon economy. The significance of this paper lies in providing a reference for corporations to navigate their responsibilities and take measures to address climate change through legal intervention

The One Belt, One Road (OBOR) program is a major step toward making the idea of a worldwide community that shares common interests a reality. Nevertheless, a number of OBOR member nations are located in areas that are particularly vulnerable to the effects of climate change. The infrastructure developments linked to the OBOR program have prompted several Western countries to express concern that these nations may become even more vulnerable to the effects of climate variability. The impact of Chinese foreign direct investment (FDI) on climate change risks in OBOR member nations is explored in this article, which also analyzes the processes at work. Examining panel data from 65 partner countries spanning 2004–2020, this research examines how China's FDI affects host countries’ capacity to handle climate change risks, with a particular emphasis on each country's vulnerability risk. Important results from the research comprise: China's direct investment in OBOR regions strengthens the climate resilience of partner countries by reducing their vulnerability to climate change. Countries with lower or medium incomes, those in close proximity to China, and those that have free trade agreements with China feel the benefits of Chinese investments more acutely. Consistent with OBOR's guiding philosophy of sharing development outcomes and promoting global governance, the positive impacts of OBOR investments can be explained in part by rising incomes and stable governments. Contrary to claims of “carbon emissions transfer” and evidence that environmental sustainability is central to the OBOR project, investments made under the OBOR have decreased climate vulnerability without increasing local carbon emissions. The research findings and policy suggestions in this article provide light on the current function of China's OBOR program and suggest ways to ensure its long-term viability.

The clear sky and clean air during the pandemic clearly remind us about our abusive behavior towards environment and natural resources. A decade away from the global commitment of development goals 2030, India ranks 117th in 192 countries for achieving SDGs. The increasing population in India imposes various challenges in managing efficient resources at urban and rural level which is further being impacted by climate change. Various studies indicate uncertainties of climate change with increasing temperature, varied rainfall and greenhouse gases continue to affect the environment by drought, flooding, sea level rise, reduced agricultural productivity, pollution and health risks. Mitigation and adaptation strategies are complex and face challenges in implementation at national and state level leading to social and economic losses. The paper discusses critical issues regarding climate change risks in India and highlights the potential of nature based solutions (NBSs) as adaptation and mitigation strategies needed in maintaining sustainable productivity and functioning of systems at all levels. Interventions with interdisciplinary approach incorporating climate resilient technologies would play a vital role in mitigating climate risks at regional/local levels.KeywordsAgricultureHeatwaveRising temperatureWater resourcesNBSs