XF-UCZ5QYA-M Research / Academic Paper ACTIVE
The Economics of Net Zero Banking
Abstract
NBER WORKING PAPER SERIES THE ECONOMICS OF NET ZERO BANKING Adair Morse Parinitha R. Sastry Working Paper 33148 http://www.nber.org/papers/w33148 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 November 2024 We have nothing to disclose. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2024 by Adair Morse and Parinitha R. Sastry. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The Economics of Net Zero Banking Adair Morse and Parinitha R. Sastry NBER Working Paper No. 33148 November 2024 JEL No. G21, G28, G31, Q54 ABSTRACT Banks have voluntarily committed to align their lending portfolios with a net zero path toward a decarbonized economy. In this review, we explore the economic channels for why portfolio decarbonization might be consistent with lender profit maximization. We frame the question by positing that net zero lending may create differential value through the channels of risk and returns, where return topics span profit margins and lending book growth arguments. We then use the lens of the frame to …
Source: pdf_first_chars
Topics
Bank Climate CommitmentsNet Zero BankingTheoretical SynthesisTransition Finance
Cites (113)
Works cited in this paper's bibliography that are themselves in the XFID registry.
- A theory of socially responsible investment (2024) Abstract
- Being stranded with fossil fuel reserves? climate policy risk and the pricing of bank loans (2024) Abstract
- Carbon emissions and the bank-lending channel (2024) Abstract
- Climate capitalists (2024)
- Climate transition risks of banks (2024) Abstract
- Climate transition vs status quo: Evidence from latent corporate strategies (2024) Abstract
- Climate-change regulations: Bank lending and real effects (2024) Abstract
- Do Banks Price Environmental Risk? Only When Local Beliefs are Binding! (2024) Abstract
- Environmental scandals and green products (2024) Abstract
- Financially Constrained Carbon Management (2024) Abstract
- Financing the global shift to electric mobility (2024) Abstract
- Getting dirty before you get clean: Institutional investment in fossil fuels and the green transition (2024) Abstract
- Housing and mortgage markets with climate risk: Evidence from california wildfires (2024) Abstract
- Information-Based Pricing in Specialized Lending (2024)
- Managerial and financial barriers to the green transition (2024)
- Measurement and Effects of Bank Exit Policies (2024) Abstract
- Picking up the pace: Loans for residential climate-proofing (2024) Abstract
- Socially responsible divestment (2024) Abstract
- Specialized Banks Solve Corporate Short-termism: Evidence from Transition Investment (2024) Abstract
- Strategic commitments to decarbonize: The role of large firms, common ownership, and governments (2024)
- The co2 question: technical progress and the climate crisis (2024) Abstract
- The esg - innovation disconnect: Evidence from green patenting (2024) Abstract
- The shifting finance of electricity generation (2024)
- The short-termism trap: Catering to informed investors with limited horizons (2024) Abstract
- The world's largest banks by assets, 2024 (2024) Abstract
- Too-big-to-strand? bond versus bank financing in the transition to a low-carbon economy (2024) Abstract
- Who bears flood risk? evidence from mortgage markets in florida (2024) Abstract
- "glossy green" banks: The disconnect between environmental disclosures and lending activities (2023) Abstract
- Adverse Selection and Climate Risk: A Response to Ouazad and Kahn (2022) (2023) Abstract
- Are Carbon Emissions Associated with Stock Returns? (2023) Abstract
- Auto finance in the electric vehicle transition (2023) Abstract
- Bank Competition and Strategic Adaptation to Climate Change (2023)
- Banking on Carbon: Corporate Lending and Cap-and-Trade Policy (2023) Abstract
- Brown capital (re)allocation (2023) Abstract
- California wildfires, property damage, and mortgage repayment (2023) Abstract
- Can Banks Save Mountains? (2023) Abstract
- Carbon emissions and shareholder value: Causal evidence from the u.s. power utilities (2023) Abstract
- Carbon pricing versus green finance (2023) Abstract
- Carbon taxes and the geography of fossil lending (2023) Abstract
- Climate change news risk and corporate bond returns in china (2023) Abstract
- Climate risk and capital structure (2023) Abstract
- Climate risks in the US banking sector: Evidence from operational losses and extreme storms (2023) Abstract
- Climate stress testing (2023)
- Counterproductive impact investing: The impact elasticity of brown and green firms (2023) Abstract
- Does esg crowd out support for government regulation? (2023) Abstract
- Innovation, industry equilibrium, and discount rates (2023) Abstract
- Sea-Level Rise Exposure and Municipal Bond Yields (2023) Abstract
- Show tell: An analysis of corporate climate messaging and its financial impacts (2023) Abstract
- Specialization in Bank Lending: Evidence from Exporting Firms (2023) Abstract
- Specialization in Banking (2023)
- The Rising Tide Lifts Some Interest Rates: Climate Change, Natural Disasters and Loan Pricing (2023) Abstract
- The rise of climate risks: Evidence on firms' expected default frequencies (2023) Abstract
- U.s electric utility adaptation to natural disasters shocks and green power mandates (2023)
- When green meets green (2023) Abstract
- Active Depositors (2022) Abstract
- Bank Local Specialization (2022) Abstract
- Defunding controversial industries: Can targeted credit rationing choke firms? (2022) Abstract
- Do banks fuel climate change? (2022) Abstract
- Does climate change affect bank lending behavior? (2022) Abstract
- Exit versus Voice (2022) Abstract
- Green capital requirements (2022) Abstract
- Green new hiring (2022)
- Showing off cleaner hands: mandatory climate-related disclosure by financial institutions and the financing of fossil energy (2022) Abstract
- Some Don't Like It Hot: Bank Depositors and NGO Campaigns Against Fossil Fuels (2022) Abstract
- The financial cost of carbon (2022) Abstract
- The pricing of carbon risk in syndicated loans: Which risks are priced and why? (2022) Abstract
- U.s. banks' exposures to climate transition risks (2022) Abstract
- Climate finance (2021)
- Corporate Green Bonds (2021)
- Do investors care about carbon risk? (2021)
- Fresh start or fresh water: The impact of environmental lender liability (2021) Abstract
- Impact investing (2021) Abstract
- Intermediation variety (2021) Abstract
- Mortgage Finance and Climate Change: Securitization Dynamics in the Aftermath of Natural Disasters (2021) Abstract
- Short-Termism Spillovers from the Financial Industry (2021) Abstract
- The Impact of Impact Investing (2021) Abstract
- The pricing of green bonds: Are financial institutions special? (2021) Abstract
- An inconvenient cost: The effects of climate change on municipal bonds (2020) Abstract
- Bank credit and market-based finance for corporations: the effects of minibond issuances (2020) Abstract
- Borrowers under water! rare disasters, regional banks, and recovery lending (2020) Abstract
- Drilling and debt (2020) Abstract
- Green revenues, profitability and market valuation: Evidence from a global firm level dataset (2020) Abstract
- Private credit: recent developments and long-term trends (2020) Abstract
- Short-Term Investors, Long-Term Investments, and Firm Value: Evidence from Russell 2000 Index Inclusions (2020) Abstract
- The importance of climate risks for institutional investors (2020) Abstract
- Micro-evidence from a system-wide financial meltdown: The german crisis of 1931 (2019) Abstract
- Stranded fossil fuel reserves and firm value (2019)
- Fintech, regulatory arbitrage, and the rise of shadow banks (2018)
- Short-Termism and Capital Flows (2018) Abstract
- Skill and luck in private equity performance (2017) Abstract
- Switching towards coal or renewable energy? the effects of financial capital on energy transitions (2017) Abstract
- Technological Innovation, Resource Allocation, and Growth (2017) Abstract
- Tracing out capital flows: How financially integrated banks respond to natural disasters (2017) Abstract
- Relationship and Transaction Lending in a Crisis (2016) Abstract
- The disintermediation of financial markets: Direct investing in private equity (2015) Abstract
- Cyclicality of credit supply: Firm level evidence (2014) Abstract
- The evolving importance of banks and securities markets (2013)
- The price of sin: The effects of social norms on markets (2009)
- Tracing the impact of bank liquidity shocks: Evidence from an emerging market (2008) Abstract
- How costly is external financing? evidence from a structural estimation (2007) Abstract
- Executive Compensation and Short-Termist Behaviour in Speculative Markets (2006) Abstract
- Distance, lending relationships, and competition (2005) Abstract
- Private equity performance: Returns, persistence and capital flows (2005) Abstract
- The Economic Implications of Corporate Financial Reporting (2005)
- Do institutional investors prefer near-term earnings over long-run value? (2001) Abstract
- Can relationship banking survive competition? (2000) Abstract
- Relationship banking: What do we know? (2000) Abstract
- Relationship lending within a bank-based system: Evidence from european small business data (2000) Abstract
- Commercial banks in investment banking conflict of interest or certification role? (1996) Abstract
- Relationship lending and lines of credit in small firm finance (1995) Abstract
- The benefits of lending relationships: Evidence from small business data (1994) Abstract
- Financial intermediation and delegated monitoring (1984) Abstract
- Strategic information transmission (1982) Abstract
People Cited in This Document
- Adair Morse author UC Berkeley Haas
- Parinitha Sastry author MIT Sloan
How to Cite This Record
Use the XFID in citations to create a stable, permanent reference that resolves to this registry entry regardless of the source URL.
Academic / report citation
National Bureau of Economic Research (NBER) (2024). The Economics of Net Zero Banking. XFID: XF-UCZ5QYA-M. Retrieved from https://xframework.id/XFUCZ5QYAM
Identifier only
XF-UCZ5QYA-M