The solar renewable energy certificate (SREC) or green certificate outside the USA is a renewable electricity production subsidy and an environmental financial asset created by governments' policy-makers. They are meant to be a Pigouvian market-based solution to monetize social externalities in...

We study whether direct greenhouse gas emissions are priced and whether the heightened attention on climate change after the Paris Accord (PA) impacts the size of the carbon risk premium. We focus on producers of electricity, because they are responsible for a large share of emissions and...

All consumption-based models of asset pricing imply that the relation between the conditional mean and conditional volatility of any asset reflects the effectiveness of holding that asset as a hedge against intertemporal variation in the marginal utility of consumption. For Treasury Bonds of...