Investors demand carbon damage risk compensation in China.

ABSTRACT: As climate awareness grows, investors are integrating climate performance into their investment decision-making processes to mitigate potential risks. This paper examines the societal costs associated with the carbon footprints of publicly listed companies in China and explores whether investors demand compensation for their exposure to risks associated with investments in assets with greater carbon damages. We find a continuous rise in the carbon footprints of Chinese listed companies, with a particularly noticeable increase following the COVID-19 pandemic. The carbon damages of Chinese listed companies are sourced mainly from their value chain emissions, with significant sectoral and regional heterogeneity. Finally, we observe a carbon damage risk premium throughout entire value chain wh

SUBMITTER: Lu Z 

PROVIDER: S-EPMC12506522 | biostudies-literature | 2025 Oct

REPOSITORIES: biostudies-literature