Global Pricing of Carbon-Transition Risk

We thank John Cochrane, Harrison Hong, Christian Leuz, Kunal Sachdeva, Zacharias Sautner, and seminar participants at Bank of Italy, Danmarks Nationalbank Climate Conference, Florida State University, HEC Montreal, Imperial College, INSEAD, McGill, NBER LTAM Meetings, NBIM, Rice University, University of Alberta, University of Cyprus, University of Miami, University of Geneva Climate Conference, UNPRI, Virtual Seminar on Climate Economics for helpful suggestions. We are grateful to Trucost for giving us access to their corporate carbon emissions data, and to Adrian Lam and Jingyu Zhang for their very helpful research assistance. Some of the ideas in this paper have been reported in the working draft: “Carbon Premium around the World”. This project has received funding from the European Research Council (ERC) under the ERC Advanced Grant program (grant agreement No. 885552 Investors and Climate Change). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.