Bangor University
Lead supervisor:
Prof Yener Altunbas 
Other supervisor(s):
- Prof Owain ap Gwilym
- Dr Rhys Ap Gwilym
Start date: October 2021
Award: General
Subject Pathway:
Management and Business
Thematic Cluster:
Economy, Enterprise, and Productivity Cluster
Can financial intermediation mitigate climate change
Firms are profit maximizers. So charging companies for the costs associated with the societal and environmental carbon pollution they cause would disincentivize their high carbon emission. Banks credit represents the main source of funding for firms. Thus, imposing higher financing costs to polluting as opposed to non-polluting firms should encourage lowering carbon emission. Within this scenario, it would be then the government responsibility to adopt policies which regulate banks' financing of firms. Using sequential game model, system dynamics model, and panel data method, the project investigates how government could reduce firms carbon emissions through financial intermediation.