Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208352
Authors: 
de Haas, Ralph
Popov, Alexander
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper No. 2318
Abstract: 
We study the relation between the structure of financial systems and carbon emissions in a large panel of countries and industries over the period 1990-2013. We find that for given levels of economic and financial development and environmental regulation, CO2 emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two distinct channels. First, stock markets reallocate investment towards less polluting sectors. Second, they also push carbon-intensive sectors to develop and implement greener technologies. In line with this second effect, we show that carbon-intensive sectors produce more green patents as stock markets deepen. We also document an increase in carbon emissions associated with the production of imported goods equal to around one-tenth of the reduction in domestic carbon emissions.
Subjects: 
Financial development
financial structure
carbon emissions
innovation
JEL: 
G10
O4
Q5
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3887-7
Document Type: 
Working Paper

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