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Review of Financial Studies· 2026Q1

Carbon Emissions and the Bank-Lending Channel

Marcin Kacperczyk, José‐Luis Peydró

Short summary

Firms with higher carbon emissions that previously borrowed from banks with climate commitments receive 10-15% less credit, leading to reduced debt, leverage, size, and investment.

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Economics and EconometricsEconomics, Econometrics and Finance