Climate, race, and the cost of capital in the municipal bond market.

Both climate risk and race are factors that may affect municipal bond yields, yet each has received relatively limited empirical research attention. We analyzed > 712,000 municipal bonds representing nearly 2 trillion USD in par outstanding, focusing on credit spread or the difference between a debt issuer's interest cost to borrow and a benchmark "risk-free" municipal rate. The relationship between credit spread and physical climate risk is significant and slightly positive, yet the coefficient indicates no meaningful spread penalty for increased physical climate risk.

Water Consumption and Utility Revenues at the Start of a Pandemic: Insights From 11 Utilities.

Eleven utilities from across the United States were studied to understand the pandemic's effects on water consumption and utility revenues. Most utilities in the study saw an overall increase in water consumption with a rise in residential demand that offset declines in nonresidential demand. Most utilities in the study experienced increased revenues in 2020 compared with previous years, largely due to rate increases, inclining block rates, and an unusually warm summer.