Plausibly Exogenous [1614] - Transition Risk (07/04/2024)

LHS Variable
Default rates of firms

RHS Variable
Environmental policy exposure

Source of Exogenous Variation
Clean Air Action that the Chinese government launched in 2013 as a quasi-natural experiment

- Huang, Punzi, and Wu (2021), “Do banks price environmental transition risks? Evidence from a quasi-natural experiment in China”