Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations.
This paper presents a contingent claim model designed to assess an insurer's equity within the framework of carbon trading regulations imposed on borrowing firms while also considering the integration of green lending. The development of this model is particularly relevant for regions with esta...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2023-01-01
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| Series: | PLoS ONE |
| Online Access: | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293975&type=printable |
| _version_ | 1827763072729612288 |
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| author | Shi Chen Yonghong Zhao Shiu-Chieh Chiu Jingfei Wu Jyh-Horng Lin |
| author_facet | Shi Chen Yonghong Zhao Shiu-Chieh Chiu Jingfei Wu Jyh-Horng Lin |
| author_sort | Shi Chen |
| collection | DOAJ |
| description | This paper presents a contingent claim model designed to assess an insurer's equity within the framework of carbon trading regulations imposed on borrowing firms while also considering the integration of green lending. The development of this model is particularly relevant for regions with established carbon trading markets, with a specific focus on the post-period following the 2015 Paris Agreement concerning climate change. We focus on shareholders and policyholders to optimize equity and ensure maximum protection. Strict caps in cap-and-trade harm interest margins, reducing guaranteed rates for equity maximization and compromising policyholder protection. Government intervention through sustainable production carbon trading hinders win-win outcomes. Green subsidies can improve insurer margins, but achieving win-win solutions remains challenging. A collective approach is needed to share sustainable production and finance benefits among diverse economic sectors. |
| first_indexed | 2024-03-11T10:46:06Z |
| format | Article |
| id | doaj.art-7ea6e408f9864510bce6b0d1eab1b8ee |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-03-11T10:46:06Z |
| publishDate | 2023-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-7ea6e408f9864510bce6b0d1eab1b8ee2023-11-14T05:34:40ZengPublic Library of Science (PLoS)PLoS ONE1932-62032023-01-011811e029397510.1371/journal.pone.0293975Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations.Shi ChenYonghong ZhaoShiu-Chieh ChiuJingfei WuJyh-Horng LinThis paper presents a contingent claim model designed to assess an insurer's equity within the framework of carbon trading regulations imposed on borrowing firms while also considering the integration of green lending. The development of this model is particularly relevant for regions with established carbon trading markets, with a specific focus on the post-period following the 2015 Paris Agreement concerning climate change. We focus on shareholders and policyholders to optimize equity and ensure maximum protection. Strict caps in cap-and-trade harm interest margins, reducing guaranteed rates for equity maximization and compromising policyholder protection. Government intervention through sustainable production carbon trading hinders win-win outcomes. Green subsidies can improve insurer margins, but achieving win-win solutions remains challenging. A collective approach is needed to share sustainable production and finance benefits among diverse economic sectors.https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293975&type=printable |
| spellingShingle | Shi Chen Yonghong Zhao Shiu-Chieh Chiu Jingfei Wu Jyh-Horng Lin Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. PLoS ONE |
| title | Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. |
| title_full | Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. |
| title_fullStr | Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. |
| title_full_unstemmed | Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. |
| title_short | Balancing equity and policyholder protection: Assessing insurer's interests in green lending under cap-and-trade regulations. |
| title_sort | balancing equity and policyholder protection assessing insurer s interests in green lending under cap and trade regulations |
| url | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0293975&type=printable |
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