Federal ID: 91-6001537
ISSN: 0022-1090 (Print) | 1756-6916 (Online)
Is Carbon Risk Priced in the Cross-Section of Corporate Bond Returns?
Tinghua Duan, Frank Weikai Li, and Quan Wen ♦ This paper examines the pricing of a firm’s carbon risk in the corporate bond market. Contrary to the “carbon risk premium” hypothesis, bonds of more carbon-intensive firms earn significantly lower returns. This effect…