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 They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.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 …
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Topics
Bank Climate CommitmentsNet Zero BankingTheoretical SynthesisTransition Finance
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People Cited in This Document
- Adair Morse author UC Berkeley Haas
- Parinitha Sastry author MIT Sloan
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| 04/05/2026 | INITIAL | 755 KB | latest |
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