Plausibly Exogenous [1935] - Carbon Offsets (05/21/2025)

LHS Variable
Usage of carbon ossets

RHS Variable
Incentive to decarbonize

Source of Exogenous Variation
ESG rating downgrade triggered by a leading ESG rating agency's methodology change

- Kim, Li, and Wu (2024), “Carbon Offsets: Decarbonization or Transition-Washing?”