Article citationsMore>>

Reboredo, J. C., & Ugolini, A. (2022). Climate Transition Risk, Profitability and Stock Prices. International Review of Financial Analysis, 83, Article 102271.
https://doi.org/10.1016/j.irfa.2022.102271

has been cited by the following article:

• TITLE: Could China’s Proactive Carbon Reduction Actions Bring New Investment Opportunities to the Stock Markets?

  AUTHORS: Zhongwei Yu

  KEYWORDS: Dual Carbon Targets, Risk-Return Profile, Green Premium, Portfolio Decarbonization

  JOURNAL NAME: Open Journal of Business and Management, Vol.11 No.6, November 23, 2023

  ABSTRACT: We study the impact of China’s proactive carbon reduction actions, as marked by the proposed Dual Carbon Targets, on the asset prices in China’s equity markets. Our findings indicate that the proposal of Dual Carbon Targets has led to significant changes in the risk-return profile of low-carbon assets, while the risk-return profile of high-carbon assets has not significantly changed. We find that certain low-carbon assets exhibit significantly abnormal excess returns after the proposal of Dual Carbon Targets. Utilizing an effective portfolio analysis approach, our findings suggest that portfolios could yield higher returns by applying a decarbonization investment strategy against the backdrop of the Dual Carbon Targets.