“…The complex relationship between time series caused by exogenous events (Ren et al, 2022) such as extreme weather events may be the main reason for the inconsistent conclusions in the above literature. With the severity of global warming and the frequent occurrence of extreme weather events, such as floods, extreme drought, and heat waves, climate risks have garnered attention from government and people (Zeng et al, 2023), and becoming one of the important risk sources driving financial markets (Venturini, 2022). The academic literature investigating the impact of climate risks on stock price behavior is extensive (Anttila-Hughes, 2016;Bourdeau-Brien & Kryzanowski, 2017;Lanfear et al, 2019;Choi et al, 2020;Diaz-Rainey et al, 2021), and some studies have begun to focus on the influence of climate risks on carbon prices (Batten et al, 2021;Shi et al, 2023).…”