Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278290 
Year of Publication: 
2022
Series/Report no.: 
ECB Working Paper No. 2762
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Using data on syndicated loans, we find that the introduction of a carbon tax is associated with an increase in domestic banks' lending to coal, oil, and gas companies in foreign countries. This effect is particularly pronounced for banks with large prior fossil-lending exposures, suggesting a role for bank specialization. Lending to private companies in foreign markets increases relatively more, which points to an intensification of banks' incentives to avoid public scrutiny. We also find that banks reallocate a relatively larger share of their fossil loan portfolio to countries with less strict environ-mental regulation and bank supervision.
Subjects: 
Carbon taxes
cross-border lending
climate change
JEL: 
F3
G15
G21
H23
Q5
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-5474-7
Document Type: 
Working Paper

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