Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200392 
Authors: 
Year of Publication: 
2019
Series/Report no.: 
SAFE Working Paper No. 254
Publisher: 
Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe, Frankfurt a. M.
Abstract: 
Exploiting heterogeneity in U.S. firms' exposure to an unconventional monetary policy shock that reduced debt financing costs, I identify the impact of financing conditions on firms' toxic emissions. I find robust evidence that lower financing costs reduce toxic emissions and boost investments in emission reduction activities, especially capital-intensive pollution control activities. The effect is stronger for firms in noncompliance with environmental regulation. Examining the ability of regaining regulatory compliance by implementing pollution control activities I find that only capital-intensive activities help firms regaining compliance. These findings underscore the impact of firms' financing conditions for emissions and the environment.
Subjects: 
Toxic emissions
Financing conditions
Bond markets
Unconventional Monetary Policy
JEL: 
G32
E52
Q52
Q53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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