Paper on Climate Smart Sovereign Credit Ratings Published Online at Management Science.
The paper entitled "Rising Temperatures, Falling Ratings: The Effect of Climate Change on Sovereign Creditworthiness" by Dr. Kamiar Mohaddes et al. has been published online by Management Science. Many argue that climate-related risks will only materialise many decades from now, but using AI to construct climate smart sovereign credit ratings we show climate-driven downgrades within this decade. This is output from the Keynes Fund project Climate Change, Volatility, and Economic Growth: Evidence from U.S. States.