Low-carbon transition risks for India’s financial system

Colenbrander, Sarah; Vaze, Prashant; Vikas, Cymroan; Ayer, Sourajit; Kumar, Neha; Vikas, Namita; Burge, Lily

doi:10.1016/j.gloenvcha.2022.102634

Cited by 14 publications

(4 citation statements)

References 32 publications

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“…In this way, the construction of an environmental credit system will force enterprises to disclose environmental information. If enterprises' environmental risks increase, the risks borne by financial institutions and creditors will also increase, thus increasing the financing costs and debt of such enterprises [49]. Enterprises that engage in EAD may adopt strategies such as reducing their production and eliminating employees to reduce financing and production costs, avoid environmental fraud, and affect their enterprise credit as much as possible.…”

Section: Theoretical Hypothesismentioning

confidence: 99%

Environmental Credit Constraints and the Enterprise Choice of Environmental Protection Behavior

Yan,

Xiang,

et al. 2023

Sustainability

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Choosing appropriate environmental protection strategies is important in improving enterprises’ economic and environmental performance. Based on the data of A-share listed enterprises from 2009 to 2019 in China, this paper uses the difference-in-differences model to identify the effects of environmental credit constraints on the enterprise choice of environmental protection behavior. We find that environmental credit constraints motivate some enterprises to choose active environmental behavior due to the incentive effect of environmental credit constraints on R&D investments. However, some enterprises may adopt evasive strategies because environmental credit constraints increase production costs and debt. State-owned enterprises prefer active environmental protection strategies to address environmental credit constraints, while private enterprises mainly adopt evasive strategies. Environmental credit constraints make high-interest and high-profitability enterprises choose active environmental strategies. Environmental credit constraints generated by enterprises’ evasive environmental behavior increase the probability of litigation and arbitration cases, and environmental credit system construction in the short term may exacerbate unemployment, which the government needs to pay attention to when developing and implementing a blacklist system for environmental fraud. Although there are limitations in this paper in terms of research objectives and samples, the results are important for improving the environmental management system and the operating performance of enterprises.

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Section: Theoretical Hypothesismentioning

confidence: 99%

Environmental Credit Constraints and the Enterprise Choice of Environmental Protection Behavior

Yan,

Xiang,

et al. 2023

Sustainability

View full text Add to dashboard Cite

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“…Finally, developing and emerging countries feature high government shareholding (Nelson et al., 2014; Spencer et al., 2017) and foreign dependence (Colenbrander et al., 2023; Manych et al., 2021) in transition‐exposed sectors. Hence, asset stranding in these countries will likely be relevant for sovereign risks (Jaffe, 2020) and current account imbalances (Volz et al., 2021).…”

Section: Transition Risks From Non‐financial Agents’ Physical and Res...mentioning

confidence: 99%

“…They attribute this to obstacles in estimating transition risks (Amel‐Zadeh & Serafeim, 2018; Ilhan et al., 2020), like lack of data, adapted methodology or readily usable scientific insights (Harnett, 2017; Ameli et al., 2020; Monasterolo, 2020a). Finally, investors in countries or areas where environmental matters have importance, like the EU, exhibit more interest in climate‐related risks (Dyck et al., 2019; Hunt & Weber, 2019) than in other places, like the United States (Bresnahan et al., 2020) or India (Colenbrander et al., 2023)…”

Section: Financiers and Transition Risksmentioning

confidence: 99%

Financial stability, stranded assets and the low‐carbon transition – A critical review of the theoretical and applied literatures

Daumas

2023

Journal of Economic Surveys

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Transitioning to a low‐carbon economy will entail sweeping transformations of energy and economic systems. A growing research body has raised concerns about the effect of such strain on financial stability. This literature on “financial transition risk” has highlighted that the conjunction of climate policy, technological change and shifts in consumption patterns may propagate to financial markets. In extreme cases, these dynamics may result in a “Climate‐Minsky” moment with systemic implications. The field has developed quickly, covering many methods and research questions. While this expansion in literature is advantageous when studying a complex issue like the low‐carbon transition, it also comes with downsides. The large number of methods hampers result comparison, and the integration of research designs. It also makes it difficult to provide a synthetic view of results in the literature as well as identify remaining uncertainties. To bridge these gaps, I propose a critical review of the literature. I examine three sub‐fields: the asset stranding literature, the direct assessment of transition risks through prospective models and the financial empirics of the low‐carbon transition. I expound their main results, critically assess underlying methodologies and propose a framework to compare results. The review ends by suggesting some avenues for future research.

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“…Guided by policy interventions and regulations, the Indian government is at the forefront of facilitating a significant transition to EVs. India's alignment with the Paris Agreement underscores its ambitious goals for EV adoption, closely linked to its target of achieving netzero carbon emissions by 2070 (Colenbrander, et al, 2023). The swift expansion of India's automobile industry underscores the urgent need for sustainable alternatives to conventional vehicles.…”

Section: Introductionmentioning

confidence: 99%

Science, Technology and Innovation Equity and Inclusion in Electric Vehicle Sector

Kumar,

Sinha

2023

Integr. J. Res. Arts Humanities

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The rapid growth of the electric vehicle (EV) industry offers a unique chance to ensure that technological progress benefits all of society. This research paper centers on developing indicators to assess and encourage equity and inclusion in EV science, technology, and innovation. By establishing a comprehensive framework, this study aims to track progress, pinpoint areas for enhancement, and contribute to a more just and innovative future. The paper emphasizes clear goals, including increased workforce diversity, equitable EV technology access for marginalized communities, and fostering an inclusive innovation ecosystem. Collaboration with diverse stakeholders researchers, policymakers, industry experts, community representatives, and advocacy groups is crucial for an unbiased perspective. Key areas within the EV sector are focal points for equity and inclusion efforts, such as workforce diversity, research funding distribution, technology accessibility, and community engagement. To measure progress, indicators are developed, incorporating qualitative aspects. Targets and benchmarks are set for each indicator to promote a challenging yet achievable path toward equity. Regular monitoring and reporting provide insights into intervention effectiveness, guided by stakeholder feedback and iteration. Acknowledging and celebrating equity and inclusion achievements motivate sustained progress. Knowledge sharing and community collaboration promote collective growth and better understanding of best practices. This research paper offers a comprehensive guide to developing indicators that assess and promote equity and inclusion in the EV science, technology, and innovation sectors. Applying these indicators and strategies enables stakeholders to contribute to a more just and innovative future, ensuring that technological benefits are accessible to all members of society.

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Low-carbon transition risks for India’s financial system

Cited by 14 publications

References 32 publications

Environmental Credit Constraints and the Enterprise Choice of Environmental Protection Behavior

Environmental Credit Constraints and the Enterprise Choice of Environmental Protection Behavior

Financial stability, stranded assets and the low‐carbon transition – A critical review of the theoretical and applied literatures

Science, Technology and Innovation Equity and Inclusion in Electric Vehicle Sector

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