Wei, Xiaokun; Ruan, Qingsong; Lv, Dayong; Liu, Mengsha; … - In: Borsa Istanbul Review 23 (2023) 3, pp. 647-661
Using a sample of Chinese municipal corporate bonds from 2011 to 2019, this paper investigates the effect of city-level air pollution on local government financing costs. We find that cities with severe air pollution tend to have higher municipal corporate bond spreads, indicating that air...