题目：Climate regulatory risk and firm commitment : Evidence from the US states-level climate mitigation plans
摘要：While the US at the national level has been slow to implement climate change mitigation initiatives, such as nationwide carbon taxes and cap-and-trade schemes, compared to European countries, some local governments have begun implementing mitigation and adaptation initiatives to reduce climate change risk. In this study, we examine how firms respond to climate regulatory risk imposed by these climate-related regulations. We specifically, investigate how the finalization of state-led climate change mitigation and adaptation plans in the US influences firms’ operating and non-financial reporting strategies. We observe that firms consider climate regulatory risk a serious issue and allocate more resources towards clean technologies and away from dirty technologies to mitigate climate change risk. Additionally, firms voluntarily disclose more information to the Disclosure Insight Action (CDP) detailing how they are managing their climate risks and opportunities - updating stakeholders on their commitment to solve climate change problems. Our findings suggest firms do not merely greenwash by cheap talking—firms disclose more climate risk-related information and produce climate mitigation and adaptation technologies. Moreover, as the climate regulatory risk increases, we find that firms strategically allocate more resources towards highly risky and impactful innovation activities, thus devoting more resources to exploratory (breakthrough) innovations and leaning less on exploitative (known existing) innovations. We also observe that short term pressure to meet immediate gains weakens the impact of climate mitigation plans. In sum, we find that firms quickly update their climate mitigating strategies if regulators demonstrate their resolve to mitigate climate risk.