• Graduate Programs
  • Research
  • Browse our Courses
  • Events
    • Events Calendar
    • Events Archive
    • Summer School
      • Applied Public Policy Evaluation
      • Deep Learning
      • Development Economics
      • Economics of Blockchain and Digital Currencies
      • Economics of Climate Change
      • The Economics of Crime
      • Foundations of Machine Learning with Applications in Python
      • From Preference to Choice: The Economic Theory of Decision-Making
      • Inequalities in Health and Healthcare
      • Marketing Research with Purpose
      • Markets with Frictions
      • Modern Toolbox for Spatial and Functional Data
      • Sustainable Finance
      • Tuition Fees and Payment
      • Business Data Science Summer School Program
    • Tinbergen Institute Lectures
    • 2026 Tinbergen Institute Opening Conference
    • Annual Tinbergen Institute Conference
  • News
  • Summer School
    • Applied Public Policy Evaluation
    • Deep Learning
    • Development Economics
    • Economics of Blockchain and Digital Currencies
    • Economics of Climate Change
    • The Economics of Crime
    • Foundations of Machine Learning with Applications in Python
    • From Preference to Choice: The Economic Theory of Decision-Making
    • Inequalities in Health and Healthcare
    • Marketing Research with Purpose
    • Markets with Frictions
    • Modern Toolbox for Spatial and Functional Data
    • Sustainable Finance
    • Tuition Fees and Payment
  • Alumni
Home | Events | What Is the Carbon Premium a Premium On?
Seminar

What Is the Carbon Premium a Premium On?

  • Location
    Vrije Universiteit Amsterdam, De Boelelaan 1105, room tba
    Amsterdam
  • Date and time

    October 07, 2026
    12:45 - 14:00

Abstract

I develop an asset-pricing framework in which climate premia depend on the price of risk and on how firm characteristics map into cash-flow exposure. Which characteristics are priced is therefore a question about economic mechanisms, not proxy selection. The framework characterizes when a scalar characteristic is sufficient for priced exposure: normalized exposure must be measurable with respect to that characteristic. Applying this criterion to emission intensity yields two testable implications, spanning and scale invariance. Both are rejected in international firm-level data: the intensity premium varies with firm size, and emission levels carry independent information conditional on firm value. Single authored paper.