Antoine Mandel from CLIMAFIN publishes with co-authors from the university of Louisiana, Missouri and Edinburgh a new paper on the impacts of extreme weather events on mortgage risks and their evolution under climate change in the European Journal of Operational Research. In short the paper:
- Provide a credit scoring model for mortgages including weather-related covariates.
- Project the impact of climate change on mortgage default.
- Find significant improvement on prediction accuracy thanks to weather covariates.
- Find a significant impact of climate change, notably in coastal areas.
Read the full paper here