Abstract
In this paper, we use a new method to identify U.S. patents associated with Climate Change Mitigation Technologies (CCMT) and examine investors’ perspectives on climate-related innovations. Our findings indicate that as societal sentiment and corporate carbon risk intensify, investors increasingly value these innovations. Moreover, such innovations help shield firms with high carbon risks from underperforming returns. We also find that advancements in CCMT correlate with lower increases in firm carbon emissions and reduced exposure to climate risk factors. Finally, our study highlights the critical influence of government policies in encouraging climate-related innovations.
Presenters
Bing LiangCharles P. McQuaid Professor of Finance, Finance, UMass, Massachusetts, United States
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
KEYWORDS
Climate change; Climate change mitigation technologies, Patents; Asset pricing, Risk
