Finance and Green Growth

• 成果类型: Article
• 署名作者: De Haas, Ralph; Popov, Alexander
• 署名单位: European Bank of Reconstructon & Development
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueac081
• 发表日期: 2022
• 页码: 637-668
• 关键词: stock markets; pollution; INNOVATION; externalities; TECHNOLOGY; allocation; emissions

摘要

We study how countries' financial structure affects their transition to low-carbon growth. Using global industry-level data, we document that carbon-intensive industries reduce emissions faster in economies with deeper stock markets. The main channel underpinning this stylised fact is that stock markets facilitate green innovation in carbon-intensive sectors, resulting in lower carbon emissions per unit of output. More tentative evidence indicates that stock markets also help to reallocate investment towards more energy-efficient sectors. Cross-border spillovers are limited: less than 5% of these industry-level reductions in domestic emissions are offset by carbon embedded in imports. A firm-level analysis of an exogenous shock to the cost of equity in Belgium confirms our findings.