Alongside his coauthors, Ahmed Baig, an assistant professor in the Department of Finance, had a paper, “Greenhouse Gas Emissions and the Stability of Equity Markets,” accepted for publication in the Journal of International Financial Markets, Institutions and Money.
Baig and his team examined how greenhouse gas emissions affect stock market volatility. They found that higher emissions of CO2, methane and agricultural nitrous oxide lead to greater market fluctuations. This pattern is consistent across various ways of measuring volatility and emissions, using nearly 30 years of data from stock exchanges in 50 different countries. These results suggest that carbon risks are already factored into financial markets and highlight the potential of green finance to create more stable markets and support a sustainable global economy.