Carbon taxes and the geography of fossil lending

Arbeitspapier

Using data on syndicated loans, we find that the introduction of a carbon tax is associated with an increase in domestic banks' lending to coal, oil, and gas companies in foreign countries. This effect is particularly pronounced for banks with large prior fossil-lending exposures, suggesting a role for bank specialization. Lending to private companies in foreign markets increases relatively more, which points to an intensification of banks' incentives to avoid public scrutiny. We also find that banks reallocate a relatively larger share of their fossil loan portfolio to countries with less strict environ-mental regulation and bank supervision.

Angaben zum Objekt

• ISBN: 978-92-899-5474-7
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2762

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Financial Markets ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
• Thema: Carbon taxes ; cross-border lending ; climate change

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Laeven, Luc ; Popov, Alexander
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2022

Weitere Informationen

• DOI: doi:10.2866/629950
• Handle: http://hdl.handle.net/10419/278290
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ