Corporate credit risk modeling under carbon pricing uncertainty: A Knightian uncertainty approach

This study examines the financial implications of carbon pricing policies within the Knightian uncertainty framework. Employing a dynamic behavioural credit risk model driven by Lévy jump-diffusion, we scrutinise how carbon pricing uncertainty influences default probability and securities value. We...

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Bibliographic Details
Main Authors: Chabi Marcellin Daki Dominique, Yixiang Tian
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666188824001321
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