Anastasiou, Dimitris, Ballis, Antonis, Guizani, Assil, Kallandranis, Christos and Lakhal, Faten (2024). Monetary policy impact on sustainability:Analyzing interest rates and corporate carbon emissions. Journal of Environmental Management, 368 ,
Abstract
This study aims to investigate the impact of monetary policy on firms’ carbon emissions. The primary focus is on the effect of increasing interest rates on the carbon footprint of companies, both prior to and following the implementation of the Paris Agreement in 2015. The results show that there is a positive relationship between interest rates and carbon emissions indicating that in the face of increasing interest rates, companies are more likely to choose short-term financial stability above long-term sustainability objectives. This positive relationship is less prevalent following the Paris Agreement suggesting that policymakers should continue to strengthen global climate initiatives as a pressure for companies to invest in green activities. Additional evidence suggests that the impact of interest rates on carbon emissions is particularly noticeable in situations characterized by elevated levels of economic and policy uncertainty, weak corporate governance quality, and poor investor protection. These results are robust to endogeneity concerns, alternative measures of interest rates, carbon emission, and alternative samples.
Publication DOI: | https://doi.org/10.1016/j.jenvman.2024.122119 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship |
Additional Information: | © 2024 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). |
Uncontrolled Keywords: | Interest rates,Carbon emissions,Paris agreement,Economic and policy uncertainty,Investor protection,corporate governance |
Publication ISSN: | 1095-8630 |
Data Access Statement: | Data will be made available on request. |
Last Modified: | 14 Aug 2024 07:07 |
Date Deposited: | 13 Aug 2024 14:25 |
Full Text Link: | |
Related URLs: |
https://www.sci ... 301479724021054
(Publisher URL) |
PURE Output Type: | Article |
Published Date: | 2024-09-01 |
Published Online Date: | 2024-08-12 |
Accepted Date: | 2024-08-04 |
Authors: |
Anastasiou, Dimitris
Ballis, Antonis ( ![]() Guizani, Assil Kallandranis, Christos Lakhal, Faten |