Related Experiment Video
Updated: Sep 16, 2025

Simulating Impacts of Ice Storms on Forest Ecosystems
Published on: June 30, 2020
Natural disaster, ESG investing, and financial contagion
Haiying Wang1, Ying Yuan2,3,4, Tianyang Wang5
1School of Finance, Jiangxi University of Finance and Economics, Nanchang, China.
Abstract:
This study investigates financial contagion during natural disasters and explores the potential advantage of environmental, social, and governance (ESG) investing in such contagion. Specifically, we propose a new edge-weighted undirected contagion network to explore disaster-driven contagion and transmission channels across sectors, asset classes, and ESG international indexes. Our empirical results demonstrate the existence of the disaster-driven contagion. Natural disasters may increase investors' risk aversion, which further magnify portfolio rebalancing behavior, leading to the spread of financial contagion. Moreover, we also find that ESG investing helps mitigate the spread of disaster-driven contagion, thereby contributing to the resilience of the financial system during natural disasters.
Related Concept Videos
Applications of GIS: Disaster Management and Emergency Response
Ecological Disturbance
Design Example: Analyzing Capacity Contours for Flood Risk Assessment
Social Traps
Steps in Outbreak Investigation
Threats to Biodiversity

