Assil Guizani is an Associate Professor of Finance at EDC Paris Business School. He has a PhD in Finance from Nanterre University. His research interests lie mainly within the corporate finance, corporate governance, and corporate environmental footprint areas. He has published several papers in international peer-reviewed journals.
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This study aims to investigate the impact of monetary policy on firms' carbon emissions. The primary focus is on the effect of interest rates on the carbon footprint of companies. The results show that there is a positive relationship between interest rates and carbon emissions indicating that in the face of increasing interest rates, companies are more likely to choose short-term financial stability above long-term sustainability objectives. This positive relationship is less prevalent following the Paris Agreement suggesting that policymakers should continue to strengthen global climate initiatives as a pressure for companies to invest in green activities.
Additional evidence suggests that the impact of interest rates on carbon emissions is particularly noticeable in situations characterized by elevated levels of economic and policy uncertainty, weak corporate governance quality, and poor investor protection.
- Research
- Covid Special Series, Sustainable Development and CSR
