We investigate carbon risk in global equity prices. We develop a measure of carbon risk using industry standard …. We construct a carbon risk factor-mimicking portfolio to understand carbon risk through the lens of a factor-based asset … pricing model. While carbon risk explains systematic return variation well, we do not find evidence of a carbon risk premium …

Climate risk is the negative effect of climate change on several aspects of the environment, business, and society … due to climate modifications that have become commonplace; the transition risk arises from the economic and regulatory … financial terms, is the correct assessment and quantification of transition risk, as it is not univocal in the literature. This …

Using Credit Default Swap spreads, we construct a forward-looking, market-implied carbon risk factor and show that … carbon risk affects firms' credit spread. The effect is larger for European than North American firms and varies … to carbon risk when market-wide concern about climate change risk is elevated. Finally, lenders expect that adjustments …

Using Credit Default Swap spreads, we construct a forward-looking, market-implied carbon risk factor and show that … carbon risk affects firms’ credit spread. The effect is larger for European than North American firms and varies … to carbon risk when market-wide concern about climate change risk is elevated. Finally, lenders expect that adjustments …