Figure 5.
The left line graph plots G Trans Predicted against Climate Risk. The horizontal axis ranges from 0 to about 0.85, and the vertical axis ranges from about negative 0.15 to 0.10. Three curves represent Min Digital, Mean Digital and Max Digital. All three rise as climate risk increases, peak around 0.35 to 0.40, and then decline. Max Digital remains above the other two curves across most of the range, reaching about 0.085 at its peak and falling to about negative 0.015 near climate risk 0.85. Mean Digital and Min Digital peak near 0.06 and decline to around negative 0.025 near 0.85. Vertical dotted reference lines appear around climate risk 0.34 to 0.40. The right line graph also plots G Trans Predicted against Climate Risk from 0 to about 0.85, with the vertical axis ranging from about negative 0.15 to 0.05. Low K Z, Mean K Z and High K Z curves all rise to a peak near climate risk 0.35 and then decline. Low K Z reaches the highest peak at about 0.06. Mean K Z peaks near 0.03, while High K Z remains around 0 at its peak. The three curves converge near climate risk 0.8 at about negative 0.045, then continue downward. Vertical dotted reference lines appear around climate risk 0.32 to 0.36.The role of digitalization and financial constraints
Note(s): This figure illustrates the shifting inflection points under different scenarios. The vertical dotted lines denote the turning points of the inverted U-shaped curves. Higher levels of digitalization (left) lead to a rightward shift in the turning point (from 0.330 to 0.390), while intensified financial constraints (right) trigger a leftward shift (from 0.364 to 0.316)