Do Investors Care about Carbon Risk? A Global Perspective

Shaojun Zhang

Working Paper Series from Ohio State University, Charles A. Dice Center for Research in Financial Economics

Abstract: Companies face significant carbon-transition risk as the global economy works to combat climate change. This paper studies the market-based premium associated with the carbon-transition risk globally and finds that firms with more carbon-intense business models earn higher returns in recent years. The carbon return is impacted by climate-aware institutional flows, is magnified following heightened climate policy risk, and is lower in countries with more institutional presence, higher levels of development, less physical risk, and better governance. The pricing the carbon-transition risk is well under-way globally, but further global regulatory coordination is required to mitigate the externalities of carbon emissions.

JEL-codes: G10 G12 G15 (search for similar items in EconPapers)
Date: 2022-09
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://dx.doi.org/10.2139/ssrn.4174429
Our link check indicates that this URL is bad, the error code is: 410 Gone (https://dx.doi.org/10.2139/ssrn.4174429 [302 Found]--> https://www.ssrn.com/abstract=4174429 [302 Moved Temporarily]--> https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4174429)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:ohidic:2022-06

Access Statistics for this paper

More papers in Working Paper Series from Ohio State University, Charles A. Dice Center for Research in Financial Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().