Do innovation, financial development and institutional quality matter in managing carbon risk?

Submitted by Vicentia Quartey on
EfD Authors:

Using territorial- and consumption-based carbon emissions as proxies for carbon risk, the study examined the impact of innovation on carbon risk while controlling for institutional quality and financial development effects in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 1986 to 2021. To address cross-sectional dependence and ensure robustness, we employed the augmented mean group (AMG) and cross-sectional autoregressive distributed lags (CS-ARDL) estimation techniques.

Carbon Pricing