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Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war
The cap-and-trade mechanism affects firms’ production and operation decisions and carbon emissions, making them move towards environmental sustainability. This article develops a contingent claims model to examine the impact of the regulatory cap-and-trade mechanism on the green finance strategy of...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10019747/ https://www.ncbi.nlm.nih.gov/pubmed/36928452 http://dx.doi.org/10.1371/journal.pone.0282901 |
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author | Huang, Fu-Wei Lin, Jyh-Jiuan |
author_facet | Huang, Fu-Wei Lin, Jyh-Jiuan |
author_sort | Huang, Fu-Wei |
collection | PubMed |
description | The cap-and-trade mechanism affects firms’ production and operation decisions and carbon emissions, making them move towards environmental sustainability. This article develops a contingent claims model to examine the impact of the regulatory cap-and-trade mechanism on the green finance strategy of an insurer during a war. Participating in the cap-and-trade scheme of the insurer that funds the borrowing firms also implicitly affects firm production and carbon emissions. The results show that increasing the green loans decreases the interest margin of the insurer but helps policyholder protection. The insurer is reluctant to provide green loans for the green borrowing firm and thus retards sustainable development. A stringent regulatory cap of the cap-and-trade mechanism raises the insurer’s interest margin but hurts policyholder protection. From the perspective of the insurer’s profit, regulatory cap efficiently derives insurer lending toward sustainability through borrowing-firm cleaner production. An increased war impacting the polluting borrowing firm increases the insurer’s interest margin but harms policyholder protection, affecting insurance stability adversely. This research enriches related literature and knowledge concerning insurer green finance practices indirectly associated with cleaner production. The research also highlights the significance of the regulatory cap-and-trade mechanism that reflects cleaner production in affecting insurer performance during a war. |
format | Online Article Text |
id | pubmed-10019747 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-100197472023-03-17 Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war Huang, Fu-Wei Lin, Jyh-Jiuan PLoS One Research Article The cap-and-trade mechanism affects firms’ production and operation decisions and carbon emissions, making them move towards environmental sustainability. This article develops a contingent claims model to examine the impact of the regulatory cap-and-trade mechanism on the green finance strategy of an insurer during a war. Participating in the cap-and-trade scheme of the insurer that funds the borrowing firms also implicitly affects firm production and carbon emissions. The results show that increasing the green loans decreases the interest margin of the insurer but helps policyholder protection. The insurer is reluctant to provide green loans for the green borrowing firm and thus retards sustainable development. A stringent regulatory cap of the cap-and-trade mechanism raises the insurer’s interest margin but hurts policyholder protection. From the perspective of the insurer’s profit, regulatory cap efficiently derives insurer lending toward sustainability through borrowing-firm cleaner production. An increased war impacting the polluting borrowing firm increases the insurer’s interest margin but harms policyholder protection, affecting insurance stability adversely. This research enriches related literature and knowledge concerning insurer green finance practices indirectly associated with cleaner production. The research also highlights the significance of the regulatory cap-and-trade mechanism that reflects cleaner production in affecting insurer performance during a war. Public Library of Science 2023-03-16 /pmc/articles/PMC10019747/ /pubmed/36928452 http://dx.doi.org/10.1371/journal.pone.0282901 Text en © 2023 Huang, Lin https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Huang, Fu-Wei Lin, Jyh-Jiuan Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title | Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title_full | Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title_fullStr | Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title_full_unstemmed | Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title_short | Insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
title_sort | insurer green finance under regulatory cap-and-trade mechanism associated with green/polluting production during a war |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10019747/ https://www.ncbi.nlm.nih.gov/pubmed/36928452 http://dx.doi.org/10.1371/journal.pone.0282901 |
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