Figure 1.
The line graph has Climate Risk Intensity on the horizontal axis and Corporate Response Level on the vertical axis. A horizontal reference line marks 0. The stimulus effect rises steadily as climate risk intensity increases. The crowding-out effect declines progressively below 0 and becomes increasingly negative. The net impact initially rises slightly above 0, reaches a maximum near the labelled Threshold Point, then declines, crosses the 0 line and continues downward as climate risk intensity increases. A vertical dashed reference line passes through the Threshold Point.The inverted U-shaped mechanism