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on Resource Economics |
| By: | Franklin Allen (Imperial College London; European Corporate Governance Institute (ECGI)); Patrick Behr (Independent); Riccardo Cosenza (USI Lugano); Eric Nowak (Swiss Finance Institute; Universita della Svizzera Italiana (USI Lugano)) |
| Abstract: | We explore how investors react to firms' biodiversity-focused activities in the Voluntary Carbon Market. The average stock price reaction of forestry carbon offsetting with and without biodiversity impact is not significantly different from zero until the end of 2022. Following a Guardian article claiming rainforest carbon offsets to be 'worthless' in January 2023, the announcement returns to carbon credit retirements turned significantly negative. This effect is not significant for carbon credits contributing to biodiversity conservation certified by the Climate, Community & Biodiversity CCB Standard, but it is significantly negative for other credits. Our results show that investors care about both the biodiversity impact of carbon credits as well as the climate-change mitigation integrity of offsetting activities. |
| Keywords: | Carbon Offsets, Carbon Pricing, Climate Change, Climate Finance, Rainforest, Voluntary Carbon Markets, Biodiversity |
| JEL: | G11 G12 Q21 Q23 Q54 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2585 |
| By: | Manuel C. Kathan (University of Augsburg); Raphaela Roeder (University of Augsburg); Sebastian Utz (University of Augsburg); Martin Nerlinger (University of St. Gallen - School of Finance; Swiss Finance Institute) |
| Abstract: | We examine how changes in competition affect firms’ carbon performance. Exploiting reductions in import tariffs as a quasi-natural experiment that increases competitive pressure, we find that stronger competition improves firms’ carbon efficiency through lower Scope 1 and 2 emission intensities. These results remain robust to alternative specifications, heterogeneous treatment effects, and placebo tests. Mechanism analyses indicate systematic differences in firms’ strategic responses. High-emission firms tend to adopt visible environmental actions and reallocate resources toward intangible assets, whereas low-emission firms increase investment and financing activities. Overall, our results highlight competition as a determinant of corporate decarbonization, suggesting that market forces can complement regulatory approaches to improving firms’ environmental performance. |
| Keywords: | Carbon Emissions, Environmental Performance, Sustainability, Competition, Import Tariffs, Quasi-Natural Experiment |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2588 |
| By: | Barreto, Yuri (Bocconi University); Britto, Diogo (University of Milan Bicocca); Carrillo, Bladimir (Universidade Federal de Pernambuco); Da Mata, Daniel (São Paulo School of Economics-FGV); Emanuel, Lucas (Universidade Federal de Pernambuco); Sampaio, Breno (Universidade Federal de Pernambuco) |
| Abstract: | Worsening climatic conditions and water scarcity pose major threats to rural livelihoods and to the economic development of arid regions. This paper evaluates a large-scale, low-cost climate adaptation program that built one million rain-fed water storage cisterns in Brazil’s poorest and most drought-prone areas. Using novel individual-level administrative data and a difference-in-differences design, we show that the program substantially improved both economic and health outcomes, benefiting adults and children alike. Within ten years, household dependency on cash transfers fell by up to 34%, while formal labor income increased by 20%. Hospitalizations due to waterborne diseases declined by 16% among adults and 37% among children, and compliance with cash transfer conditionalities on child health and education improved. Additional evidence suggests that these gains were driven by a relaxation of time constraints: cisterns markedly reduced the time burden of water collection, enabling beneficiaries to allocate more time to productive activities. A cost-benefit analysis indicates a high marginal value of public funds relative to a broad range of public policies. |
| Keywords: | water, cisterns, labor market, climate adaptation, health |
| JEL: | Q54 Q25 Q58 J01 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18250 |