Annual Conference

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Sustainable and Green Finance

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May 2025

Pricing the Priceless: The Financing Cost of Biodiversity Conservation

Fukang CHEN, Minhao CHEN, Lin William CONG, Haoyu GAO, Jacopo PONTICELLI
Biodiversity conservation incurs substantial economic costs. We investigate how financial markets price the risks such costs induce, exploiting the “Green Shield Action,” a major regulatory initiative launched in China in 2017 to enforce biodiversity preservation rules in national nature reserve...
Keywords: Alternative Data, Biodiversity Transition, Bonds, China, Sustainability
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Annual Conference

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Sustainable and Green Finance

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May 2025

Financial Innovation via Sustainable Lending

Anya KLEYMENOVA, Xi LI, Yinan LI
We examine the incentives that drive banks to introduce Sustainability-Linked Loans (SLLs). By analyzing a comprehensive dataset of banks leading these deals, we find that multinational banks, especially top players in the global syndicated markets, are more likely to offer SLLs than domestically fo...
Keywords: Syndicated Loans, Sustainability, Banks, Innovation, International Finance
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Annual Conference

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Sustainable and Green Finance

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May 2025

Do Investors Care about Carbon Offsets?

Yeow Hwee CHUA, Liuyang SHE
We examine how investors respond to firms’ carbon offset strategies in voluntary carbon markets. Following the retirement of carbon offsets, we find a positive market reaction, with a cumulative abnormal return of 1.1% over 15 trading days. This market response is driven by the quality of offsets ...
Keywords: Sustainable Finance, Carbon Offsets, Investor Preferences, Temperature Anomal
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Annual Conference

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Sustainable and Green Finance

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May 2025

Green Mortgages

Joao F. COCCO, Bernardo MENDES, S. Lakshmi NAARAAYANAN
Using data on the universe of mortgages on offer in the United Kingdom, we study the prevalence and features of green mortgages, used for the financing of energy-efficient properties. We uncover substantial heterogeneity in their financial benefits. Products with preferential rate provide discounts ...
Keywords: Real Estate, Household Finance, Financial Institutions, Energy Efficiency, Climate Change
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Annual Conference

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Sustainable and Green Finance

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May 2025

Coverage Neglect in Homeowners Insurance

J. Anthony COOKSON, Emily A. GALLAGHER , Philip MULDER
Most homeowners do not have enough insurance coverage to rebuild their house after a total loss. Using contract-level data from 24 homeowners insurance companies in Colorado, we show wide differences in average underinsurance across insurers that persist conditional on policyholder characteristics. ...
Keywords: Disaster Insurance, Disaster Recovery, Information Frictions and Limited Attention, Insurance Demand
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