Bolton, Patrick; Kacperczyk, Marcin - National Bureau of Economic Research - 2021
Companies are exposed to carbon-transition risk as the global economy transitions away from fossil fuels to renewable … over 14,400 firms in 77 countries. We find a widespread carbon premium--higher stock returns for companies with higher … levels of carbon emissions (and higher annual changes)--in all sectors over three continents, Asia, Europe, and North America …