EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective
The ability of firms to reduce carbon emissions is linked to how well they can invest in new lower-emissions technologies, and thus to the types of finance they can access. This study investigates the relationship between finance and emissions reduction for manufacturing firms. It uses a novel datas...
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| Format: | Online |
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| Language: | English |
| Published: |
European Investment Bank
2025
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| Subjects: | |
| Online Access: | ONIX_20250402_9789286159015_7 |
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| _version_ | 1869516685478723584 |
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| collection | Directory of Open Access Books |
| description | The ability of firms to reduce carbon emissions is linked to how well they can invest in new lower-emissions technologies, and thus to the types of finance they can access. This study investigates the relationship between finance and emissions reduction for manufacturing firms. It uses a novel dataset that combines information from the EU Emission Trading System with data on firms’ financial accounts. The findings indicate that higher financial leverage is associated with lower emission intensity at the firm level, primarily due to firms having used long-term debt. This suggests that improving access to such finance is generally conducive to corporate emissions reductions. However, this effect varies depending on the starting point of firms. For firms with very high carbon intensity, increased leverage is linked to significant reductions in emissions, suggesting that better access to finance can facilitate the adoption of green technologies. Conversely, for firms that are already relatively carbon efficient, the effect is not significant. |
| format | Online |
| id | doab-20.500.12854ir-158079 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | European Investment Bank |
| publisherStr | European Investment Bank |
| record_format | ojs |
| spelling | doab-20.500.12854ir-1580792025-07-30T09:00:08Z EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting The ability of firms to reduce carbon emissions is linked to how well they can invest in new lower-emissions technologies, and thus to the types of finance they can access. This study investigates the relationship between finance and emissions reduction for manufacturing firms. It uses a novel dataset that combines information from the EU Emission Trading System with data on firms’ financial accounts. The findings indicate that higher financial leverage is associated with lower emission intensity at the firm level, primarily due to firms having used long-term debt. This suggests that improving access to such finance is generally conducive to corporate emissions reductions. However, this effect varies depending on the starting point of firms. For firms with very high carbon intensity, increased leverage is linked to significant reductions in emissions, suggesting that better access to finance can facilitate the adoption of green technologies. Conversely, for firms that are already relatively carbon efficient, the effect is not significant. 2025-04-03T05:33:40Z 2025-04-03T05:33:40Z 2025-04-02T13:55:50Z 2024 book ONIX_20250402_9789286159015_7 https://library.oapen.org/handle/20.500.12657/100550 9789286159015 https://directory.doabooks.org/handle/20.500.12854/158079 eng open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/100550/1/9789286159015_pdf.pdf European Investment Bank 10.2867/4644705 10.2867/4644705 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286159015 36 Luxembourg open access |
| spellingShingle | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title | EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title_full | EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title_fullStr | EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title_full_unstemmed | EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title_short | EIB Working Paper 2025/03 - Access to finance and corporate emissions: A distributional perspective |
| title_sort | eib working paper 2025 03 access to finance and corporate emissions a distributional perspective |
| topic | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting |
| topic_facet | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting |
| url | ONIX_20250402_9789286159015_7 |