Do Carbon Emissions Affect Stock Returns? Causal Evidence from a Supreme Court Ruling

The authors thank the editor, an anonymous referee, Jennie Bai, Chuanglian Chen, Zhi Da, Ran Duchin, Jiekun Huang, Bing Han, Marcin Kacperczyk, Kai Li, Roni Michaely, Yan Qian, Honglin Ren, Zacharias Sautner, Nianhang Xu, Qiping Xu, Liyan Yang, Shaojun Zhang and conference participants at Climate Risk and Financial Market Forum, CIRF-CFRI Conference, The 22nd Chinese Finance Annual Meeting, The 4th Chinese Finance Research Frontier Forum & the 8th Luojia Financial Summit Forum, The 2025 Massey Sustainable Finance Conference, 2025 Sun Yat-sen University-Zhongnan University of Economics and Law Financial Academic Bilateral Forum, seminar participants at PBC School of Finance of Tsinghua University, Renmin University of China, Sun Yat-Sen University, Hunan University, Jinan University, and Shanghai International Studies University for helpful discussions and useful comments.