Switch to pollution control bonds, else carbon risk will switch us: Evidence from the U.S. electric utility firms.

This study explores the implications and effectiveness of pollution control bonds (PCBs) in reducing carbon risk, focusing on a sample of 242 U S. electric utility firms from 2012 to 2022. The research investigates the association of PCB issuances with (i) absolute (unscaled) carbon emissions levels and their three scopes; and (ii) carbon emissions intensity and its three scopes.