Can Banks Save Mountains?

David Haushalter; Joseph J Henry; Peter Iliev

doi:10.1093/rcfs/cfad013

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The Review of Corporate Finance Studies Vol. 12 No. 4 2023

Can Banks Save Mountains?

David Haushalter¹; Joseph J Henry²; Peter Iliev¹

¹ Smeal College of Business, Pennsylvania State University , USA · ² Rohrer College of Business, Rowan University , USA

Abstract

We study bank policies to limit lending to companies engaged in mountaintop removal (MTR) coal mining, a form of coal extraction that has raised many environmental concerns. Using the staggered introduction of these policies, we document that these policies did not lead to meaningful changes in average bank lending or MTR mining. However, larger banks, banks that are under media pressure, and banks operating in the affected states are more likely to reduce MTR loans. Our results are consistent with the hypothesis that banks announced these policies under pressure and to improve their green credentials.

DOI: 10.1093/rcfs/cfad013
Volume: 12
Issue: 4
Pages: 761-791
Language: en
Sources: bibtex:phds-export.bib openalex crossref

Can Banks Save Mountains?

Abstract

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