We examine the effects of incorporating a potential tax on carbon emissions into a value investment strategy. We show that in a portfolio optimization problem, a carbon tax at the stock level is mathematically equivalent to a carbon constraint at the portfolio level. Using this insight we derive...

Economy can be defined as the science which, by means of the concept of utility, assesses the value of a good according to subjective and psycho-social factors, traditions and customs, in the context of some objective determinations, conditioned by certain budgetary-financial constraints. In...