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Does carbon capture & storage mitigate carbon premium? Evidence from patents

Antonio Barchi & Laura Rondi

Industrial and Corporate Change2026https://doi.org/10.1093/icc/dtag003article
AJG 3ABDC A
Weight
0.50

Abstract

Motivated by recent evidence of a carbon risk premium Bolton and Kacperczyk (2021, J. Financ. Econ., 142, 517549), we analyze firm-level patenting in Carbon Capture Utilization & Storage (CCUS) technologies and its impact on stock market performance from 2010 to 2022. Using zero-inflated Poisson regressions on patent and financial data and CO2 emissions, we find CCUS patents respond to CO2 emissions and climate policies. Moreover, although CCUS patents are negatively (positively) related to market-to-book (stock returns), we find that the effect turns if the firm is a high CO2 emitter and environmental regulation is tighter. Our findings suggest that CCUS innovation reduces the carbon risk premium, benefiting firms with higher environmental risks.

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https://doi.org/https://doi.org/10.1093/icc/dtag003

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@article{antonio2026,
  title        = {{Does carbon capture & storage mitigate carbon premium? Evidence from patents}},
  author       = {Antonio Barchi & Laura Rondi},
  journal      = {Industrial and Corporate Change},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1093/icc/dtag003},
}

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Does carbon capture & storage mitigate carbon premium? Evidence from patents

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.