Work

The Impacts of Climate Risk on the UK Economy: Time-Varying Evidence

Year: 2025

Type: article

Abstract: This paper investigates the macroeconomic effects of climate change in the United Kingdom using a TVP-VAR model, which captures the evolving relationships between climate risk and key economic variables. To achieve this, we employ a novel Climate Risk Score Index. Our results demonstrate significant and time-varying impacts of climate risk on economic policy uncertainty and GDP, with pronounced effects observed during the Global Financial Crisis and the 2016 Brexit referendum. These findings underscore the importance of adaptive policy frameworks.

Source: Energy RESEARCH LETTERS

DOI: 10.46557/001c.144711

Authors: Mohamad Husam Helmi, Abdurrahman Nazif Çatık, Coşkun Akdeniz

Institutions: Rabdan Academy, Ege University, Tekirdağ Namık Kemal University

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: diamond

OpenAlex ID: W4415720754