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Daily Digest for

November 10, 2024

DP19668 Carbon Burden

A study quantifies the U.S. corporate sector’s carbon externality by calculating the present value of social costs of future carbon emissions, termed as “carbon burden”. The analysis reveals that the carbon burden is 131% of total corporate equity value, with 77% of firms having carbon burdens exceeding their market capitalizations, while predicted emission reductions fall short of Paris Agreement targets.

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