Finance and decarbonisation: why equity markets do it better

Ralph De Haas and Alexander Popov

Research Bulletin, 2019, vol. 64

Abstract: This article provides evidence that economies receiving more funding from stock markets than credit markets generate fewer carbon emissions. Increasing the equity financing share to one-half globally would reduce aggregate per capita emissions by about one-quarter of the Paris Agreement commitment. Our findings call for supporting equity-based initiatives rather than policies aimed at decarbonising the European economy through the banking sector. JEL Classification: G10, O4, Q5

Keywords: Climate change; financial markets (search for similar items in EconPapers)
Date: 2019-11
Note: 861282
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Citations: View citations in EconPapers (6)

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