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 substantially across industries, suggesting the market recognises...

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 substantially across industries, suggesting the market recognises...

Carbon credit trading regimes put a cost-efficient price on carbon emissions and foster investments in clean and low carbon technologies. As there are new carbon credit mechanisms evolving and old ones struggling we concentrate on the question what determinants make a carbon credit project...

The substantial economic transformation required to mitigate and adapt to climate change will lower the value of certain businesses as well as some firms' assets in the not-too-distant future. Firms will need to transition to a less carbon-intensive business model, but may do so at different...

Climate change poses a substantial risk to financial markets and corporations. Companies need to measure the magnitude of the carbon risk they are facing and address possible consequences. Currently, almost all metrics to analyse carbon exposure relate to the carbon emissions of firms (either...