Is carbon risk priced in the cross-section of corporate bond returns?

• Main Authors: DUAN, Tinghua, LI, Frank Weikai, WEN, Quan
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2023
• 主題: Climate change; Carbon emissions; Corporate bond returns; ESG investing; Corporate Finance; Environmental Sciences; Finance and Financial Management
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/6606; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7605/viewcontent/SSRN_id3709572.pdf
• 機構: Singapore Management University

This paper examines the pricing of a firm's carbon risk, measured by its carbon emissions intensity, in the cross-section of corporate bond returns. Contrary to the "carbon risk premium" hypothesis, we find bonds of firms with higher carbon emissions intensity earn significantly lower...