Using a sample of 27 countries between 1990 and 2014, we find that banks charge higher interest rates and adjust other contractual features of their loans when lending to firms facing more stringent environmental regulations. Our evidence suggests that lenders' concerns about the increase in...

This paper uses US Environmental Protection Agency (EPA) enforcement data to construct measures of environmental regulatory intensity, and high frequency wind patterns data to identify the systematic marginal effects of environmental regulatory intensity on local government's cost of borrowing,...