Carbon Burden / Lubos Pastor, Robert F. Stambaugh, Lucian A. Taylor.

Format:

Book

Author/Creator:

Pastor, Lubos.

Contributor:

Stambaugh, Robert F.

Taylor, Lucian A.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w33110.

NBER working paper series no. w33110

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

We compute the U.S. corporate sector's "carbon burden"--the present value of social costs of future carbon emissions. Our baseline estimate is 131% of total corporate equity value. Meeting the Paris Agreement goals would reduce the burden by roughly one-fourth, but emissions forecasts and firms' own targets fall short of that reduction. 13% of firms have carbon burdens exceeding their market capitalizations, even with indirect emissions excluded. Firms with higher carbon burdens have higher costs of capital, even after controlling for past emissions. Only a small fraction of the burden is priced through that channel, however.

Notes:

November 2024.

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