A Review of Climate Change and Its Financial Impact on the Transportation Sector

Authors

Ray Anthony L. Almonares, Thammasat Business School, Thammasat University, Bangkok, ThailandFollow

JEL Classification System

G3, Q54, L91

Abstract

In this paper, I review the existing literature on climate risks—both transition and physical—and their relationship with firm performance, with a specific focus on transportation finance. I find that the broad literature on carbon emissions and firm performance overlooks two critical characteristics of the global transportation sector: its heavy reliance on fossil fuels and the international scope of its operations. As a result, the conclusions drawn from this body of work may not be directly applicable to global transportation companies. Furthermore, I examine existing studies on extreme sea levels and the global maritime transportation sector, noting that these studies have not yet quantified the economic impact of extreme sea levels on the firm performance of seaports and shipping companies. Similarly, the nascent climate finance literature on the physical impacts of climate change has yet to address this issue. Filling these gaps is crucial, given the sector’s central role in global trade and its heightened vulnerability to climate risks. The research gaps I identified in this review underscore the need for future studies at the intersection of climate change and transportation finance.

Recommended Citation

Almonares, Ray Anthony L. (2025) "A Review of Climate Change and Its Financial Impact on the Transportation Sector," DLSU Business & Economics Review: Vol. 34: No. 2, Article 11.
DOI: https://doi.org/10.59588/2243-786X.1152
Available at: https://animorepository.dlsu.edu.ph/ber/vol34/iss2/11