News/recent presentations:

Interview with the State of Geneva 's Department of Economic Affairs on "The Energy Crisis and the Green Transition"

AERE Miami conference presentation on "Labor Income in Free Access, Private Ownership, and Informality"

New working paper:

Why Do Firms Issue Green Bonds? with Shema Mitali and Jean-Charles Rochet

Abstract: Green bonds allow firms to commit to climate-friendly projects. Empirical studies show that stock prices react positively to their issuance. We suggest that green bonds help managers signal the profitability of their green projects. We build a signaling model in which firms' incentives to undertake green projects are amplified by short-term managerial incentives. We test this prediction by exploiting cross-industry differences in the stock-price sensitivity of managers' pay and cross-country variations in effective carbon prices. Our results also imply that green bonds are not substitutes for but complements to carbon pricing.