Climate Regulatory Risk and Corporate Bonds

The authors appreciate the comments of Miguel Ampudia, Nina Boyarchenko, Sudheer Chava, Pierre Chollet, John Griffin, Matthew Gustafson, Emir Ilhan, Pedro Matos, Quentin Moreau, Greg Niehaus, Zacharias Sautner, Sergio Schmukler, Zhan Shi, Greg Weitzner, Xiaoyu David Xu, and conference and seminar participants at the Georgia Tech Institute of Technology, AFA meetings, the CFMR Conference, the ESSEC-Amundi Chair Webinar, the Current Challenges in Economics and Finance Conference, the PRI conference, the Annual Bank Conference in Development Economics, the Federal Reserve Bank of San Francisco's Virtual Seminar on Climate Economics, Federal Reserve Bank of Chicago, the European Central Bank, the London Business School, the University of Alabama, the University of Bristol, the University of Cambridge, the University of Minnesota, the University of Ottawa, the University of South Carolina, the University of St. Gallen, the University of Technology Sydney, the University of Texas at Austin and the University of Washington. We thank Peter Prastakos for excellent research assistance. Laura Starks previously served on the boards of directors for mutual funds and retirement annuities and has occasionally consulted for financial institutions. This is NBER working paper W29994. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research or the position of the Federal Reserve Bank of New York or the Federal Reserve System. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

• April 27, 2022