IDEAS home Printed from https://ideas.repec.org/p/ecl/ohidic/2022-06.html
   My bibliography  Save this paper

Do Investors Care about Carbon Risk? A Global Perspective

Author

Listed:
  • Zhang, Shaojun

    (Ohio State University)

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.

Suggested Citation

  • Zhang, Shaojun, 2022. "Do Investors Care about Carbon Risk? A Global Perspective," Working Paper Series 2022-06, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    • Handle: RePEc:ecl:ohidic:2022-06
    DOI: 10.2139/ssrn.4174429
    as

    Download full text from publisher

    File URL: https://dx.doi.org/10.2139/ssrn.4174429
    Download Restriction: no
    File URL: https://libkey.io/10.2139/ssrn.4174429?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Namasi G. Sankar & Suryadeepto Nag & Siddhartha P. Chakrabarty & Sankarshan Basu, 2024. "The Carbon Premium: Correlation or Causation? Evidence from S&P 500 Companies," Papers 2401.16455, arXiv.org.
    2. Siddhartha P. Chakrabarty & Suryadeepto Nag, 2023. "Risk measures and portfolio analysis in the paradigm of climate finance: a review," SN Business & Economics, Springer, vol. 3(3), pages 1-22, March.
    3. Sankar, Namasi G. & Nag, Suryadeepto & Chakrabarty, Siddhartha P. & Basu, Sankarshan, 2024. "The carbon premium: Correlation or causality? Evidence from S&P 500 companies," Energy Economics, Elsevier, vol. 134(C).

    More about this item

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:ohidic:2022-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cdohsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.