Companies are exposed to carbon-transition risk as the global economy transitions away from fossil fuels to renewable … energy. We estimate the market-based premium associated with this transition risk at the firm level in a cross-section of …. Short-term transition risk is greater for firms located in countries with lower economic development, greater reliance on …

and subsidiaries of the world's biggest manufacturing, energy, and utility companies. Our results suggest that financial …

price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

We develop a financial-economic model for carbon pricing with an explicit representation of decision making under risk … specifications. We show that risk associated with high damages in the long term leads to stringent mitigation of carbon dioxide … emissions in the near term. Our results provide insight into how a systematic incorporation of climate-related risk influences …