I construct a measure of cash flow duration at the firm level and link it to carbon emissions of the same firm. Firms with higher carbon emissions generate their cash flows in the near term, reflecting that long-term cash flows are relatively more exposed to transitional climate risks. This...

The transition to a carbon-neutral economy is necessary to limit the negative impact of climate change and has become one of the world's most urgent priorities. This paper assesses the impact of three potential transition pathways, differing in the timing and level of ambition of emission...