Companies face significant carbon-transition risk as the global economy works to combat climate change. This paper … studies the market-based premium associated with the carbon-transition risk globally and finds that firms with more carbon …-intense business models earn higher returns in recent years. The carbon return is impacted by climate-aware institutional flows, is …

transmission mechanisms. With carbon assets becoming prominent as an alternative asset in investment portfolios, the ETS market has …, among carbon prices across four jurisdictions – European Union, New Zealand, California, and Hubei (China) ETS. We use … dynamics of the carbon market is mainly explained by itself and not due to spillovers from other markets, indicating that the …

-disclosed emissions, both in the U.S. sample and in Europe. Investors might want to be cautious about assuming that carbon emissions are …

This paper examines the pricing of a firm's carbon risk in the corporate bond market. Contrary to the "carbon risk … premium" hypothesis, bonds of more carbon-intensive firms earn significantly lower returns. This effect cannot be explained by … a comprehensive list of bond characteristics and exposure to known risk factors. Investigating sources of the low carbon …

stock returns. We find that, during the first few years of the scheme, firms that received free carbon emission allowances … significant "carbon premium," which is mainly explained by the higher cash flows due to the free allocation of carbon emission … allowances. A carbon risk factor can also explain part of the cross-sectional variation of stock returns as firms with high …