Welfare Consequences of Sustainable Finance

• 成果类型: Article
• 署名作者: Hong, Harrison; Wang, Neng; Yang, Jinqiang
• 署名单位: Columbia University; National Bureau of Economic Research; Shanghai University of Finance & Economics
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad048
• 发表日期: 2023
• 页码: 4864
• 关键词: stochastic integrated assessment; CLIMATE TIPPING POINTS; intertemporal substitution; rare disasters; general equilibrium; RISK; INVESTMENT; temperature; ECONOMICS; taxation

摘要

We model the welfare consequences of mandates that restrict investors to hold firms with net-zero carbon emissions. To qualify for these mandates, value-maximizing firms have to accumulate decarbonization capital. Qualification lowers a firm's required return by its decarbonization investments divided by Tobin's q, that is, the greenium or the dividend yield shareholders forgo to address the global-warming externality. The welfare-maximizing mandate approximates the first-best solution, yielding welfare gains compared to laissez-faire by mitigating the weather disaster risks resulting from carbon emissions. Our model generates optimal transition paths for decarbonization that we use to evaluate proposed net-zero targets. Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online