Nuremberg Research Seminar in Economics on 6 December 2023 – LG 0.423
You are invited to join the weekly Nuremberg Research Seminar in Economics on 6 December 2023, from 13.15 to 14.45 pm. The seminar will be held in room LG 0.423. Luca Taschini (University of Edinburgh) will be talking about „Carbon Default Swap – Disentangling the Exposure to Carbon Risk Through CDS”.
More information can be found here:
Using Credit Default Swap spreads, we construct a forward-looking, market-implied carbon risk factor and examine how the scope and speed of economic transformation vary across jurisdictions, sectors, and over time. Explicit carbon emission pricing enables lenders to sharpen their assessments. The breadth of the regulation intensifies financial repercussions from carbon risk. The impact differs significantly across industries, indicating that the market identifies which sectors are better poised for a transition to a low-carbon economy.