The impact of carbon risk on the cost of debt in the listed firms in G7 economies: The role of the Paris agreement

IF 13.6 2区经济学 Q1 ECONOMICS

Energy Economics Pub Date : 2024-09-24 DOI:10.1016/j.eneco.2024.107925

Ayotola Owolabi, Mohammad Mahdi Mousavi, Giray Gozgor, Jing Li

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Abstract

The Paris Agreement, signed in 2015, sets ambitious goals for diminishing greenhouse gas emissions and restricting the rise in global temperature to achieve a less carbon-intensive and climate-resilient global economy. The Paris Agreement marked a defining moment in the worldwide response to global warming and has significantly affected the financial sector. Given this background, this research explores the effects of carbon risk on the cost of debt (CoD) in 1428 listed firms across seven economies from 2011 to 2020. The paper also reflects the post-Paris Agreement's involvement and the ESG factors' moderating effect in the empirical models. The study finds a significant impact of carbon risk on CoD following the implementation of the Paris Agreement. Notably, companies with higher carbon risk face higher borrowing rates. However, the effect of ESG on moderating the relationship between carbon risk and CoD is found to be insignificant. Further analyses confirm this finding, as individual pillars of ESG (governance and social aspects) also show insignificant moderating effects.

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碳风险对 G7 经济体上市公司债务成本的影响：巴黎协定的作用

2015 年签署的《巴黎协定》制定了减少温室气体排放和限制全球气温上升的宏伟目标，以实现碳密集度更低、气候适应性更强的全球经济。巴黎协定》标志着全球应对全球变暖的决定性时刻，并对金融业产生了重大影响。在此背景下，本研究探讨了 2011 年至 2020 年碳风险对七大经济体 1428 家上市企业债务成本（CoD）的影响。本文还在实证模型中反映了《巴黎协定》后的参与和环境、社会和治理因素的调节作用。研究发现，《巴黎协定》实施后，碳风险对CoD有重大影响。值得注意的是，碳风险较高的公司面临较高的借贷利率。然而，研究发现 ESG 对调节碳风险与 CoD 之间关系的影响并不显著。进一步分析证实了这一结论，因为环境、社会和治理的各个支柱（治理和社会方面）也显示出不显著的调节作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Energy Economics ECONOMICS-

CiteScore

18.60

自引率

12.50%

发文量

524

期刊介绍： Energy Economics is a field journal that focuses on energy economics and energy finance. It covers various themes including the exploitation, conversion, and use of energy, markets for energy commodities and derivatives, regulation and taxation, forecasting, environment and climate, international trade, development, and monetary policy. The journal welcomes contributions that utilize diverse methods such as experiments, surveys, econometrics, decomposition, simulation models, equilibrium models, optimization models, and analytical models. It publishes a combination of papers employing different methods to explore a wide range of topics. The journal's replication policy encourages the submission of replication studies, wherein researchers reproduce and extend the key results of original studies while explaining any differences. Energy Economics is indexed and abstracted in several databases including Environmental Abstracts, Fuel and Energy Abstracts, Social Sciences Citation Index, GEOBASE, Social & Behavioral Sciences, Journal of Economic Literature, INSPEC, and more.