We explore the design of climate stress tests to assess and manage macroprudential risks
from climate change in the financial sector. We review the climate stress scenarios currently …

Transitioning to a low‐carbon economy will entail sweeping transformations of energy and
economic systems. A growing research body has raised concerns about the effect of such …

Investor concerns about climate and other environmental regulatory risks suggest that these
risks should affect corporate bond risk assessment and pricing. We test this hypothesis and …

This paper assesses the risk arising from transition toward a low-emission economy and
examines its transmission channels within the financial system. The environmental dynamic …

Using data on syndicated loans, we find that the introduction of a carbon tax is associated
with a decline (increase) in bank lending to coal, oil, and gas companies in domestic …

Sustainable lending has flourished amid widespread issuance of sustainability-linked loans
(SLLs) with spreads contingent on borrower ESG performance. These loans are issued …

We investigate how corporate loan costs are affected by climate change-related natural
disasters. We construct granular measures of borrowers' exposure to natural disasters and …

We investigate how negative news coverage of borrower's impacts on climate change
affects bank loan contracting. Using a sample of publicly traded US firms for the period 2000 …

Using confidential information on banks' portfolios, inaccessible to market participants, we
show that banks that emphasize the environment in their disclosures extend a higher …

We find that manufacturing firms adopt more conservative capital structures in response to
the Nitrogen Oxides (NOx) Budget Trading Program (NBP) of 2004, a regional cap-and …