Tingyu Yu

Working Papers

Carbon in the Cloud (Job Market Paper)

Presentations: UZH Rising Scholar Conference in Finance 2025, University of Zurich, University of Manchester, Imperial CEP, HEC-HKUST Sustainable Finance Webinar, 6th Annual RCF-ECGI Corporate Finance and Governance Conference (scheduled)

Abstract: This paper examines the climate impact of corporate AI investment using a large global sample. Firms with higher AI worker shares subsequently reduce Scope 1 emissions on average. Exploiting lottery-driven variation in H-1B visa allocations to instrument AI worker supply supports a causal interpretation. The emission reductions are heterogeneous and arise mainly from lower-emitting sectors through improved forecasting and operational efficiency. By contrast, Energy and Utilities even show higher emissions as AI directs expansion toward carbon-intensive operations. This suggests that, while AI enhances efficiency, the aggregate climate impact depends critically on where and how it is deployed, which can lead to uneven emission outcomes.

Corporate Climate Lobbying with Markus Leippold and Zacharias Sautner [Data]

Honorable Mention for the 2024 Moskowitz Prize

Presentations: EFA 2024, NFA 2024, University of Zurich, SFI Research Days 2024, CEPR-ESSEC-Luxembourg Conference on Sustainable Financial Intermediation 2024, Alpine Finance Summit 2024, GRASFI 2024, Stanford Institute for Theoretical Economics Conference 2024, Financial Regulation - Going Green in Halle 2025, ZEW Conference on Ageing and Sustainable Finance 2025, Moskowitz Prize Research Webinar at Kellogg 2025, Stockholm School of Economics*, Utrecht University*, HEC Paris*, Copenhagen Business School*, University of Mannheim*, Chinese University of Hong Kong*, National University of Singapore*, Singapore Management University*, St. Gallen Financial Economics Workshop*, and more

Abstract: A frequently voiced concern is that corporate lobbying activities, at least in part, hinder the implementation of ambitious climate policies. We quantify corporate anti- and pro-climate lobbying expenses of U.S.-listed firms and identify the largest corporate lobbyists and their motives. Firms spend on average $277k per year on anti-climate lobbying ($185k on pro-climate lobbying). Anti-climate lobbyists have more carbon-intensive business models, while pro-climate lobbyists exhibit more green innovation. Firms that spend more on anti-climate lobbying earn higher returns because of a risk channel. Our results align with the increasingly common investor view that anti-climate lobbying constitutes an investment risk.

The Anatomy of Corporate Climate Exposure with Weiwei Hu and Kai Li

HKIMR Open-Bid Applied Research Programme

Presentations: AFA Poster 2022, Chinese Finance Annual Meeting 2022, HKIMR Webinar 2022*, FutFinInfo Webinar 2022*, China Finance Advancement Forum 2023*, ICGS Conference 2023, Düsseldorf CSR Conference 2023,  and UZH Rising Scholar Conference on Sustainable Finance 2024 

Abstract: This paper develops an anatomy of corporate climate exposure with enhanced economic interpretability across cross-sectional and time-series dimensions. By applying unsupervised topic modeling and context-aware techniques to earnings call transcripts, we identify new and evolving channels of climate risks and responses. Our measures capture dynamic corporate mitigation responses—transitioning from low-cost abatement to source reduction—along with transition risks originating from distinct sources and physical risks varying in persistence. These categories uncover unique impacts on carbon reduction and the cost of capital, which offset each other when combined and change over time, extending beyond insights from traditional keyword-based frameworks.

Publications

Firm-Level Green Innovation Beyond Patents with Markus Leippold

Accepted by the Review of Finance

Presentations: University of Zurich, European Commission Summer School on Sustainable Finance 2023, ETH AI+X Summit 2023, ICGS Conference 2023, Düsseldorf CSR Conference 2023, TUM Sustainable Finance Workshop 2023, Australasian Finance and Banking Conference 2023, AFA Poster 2024, Baruch Climate ESG Conference Poster 2024, Future of Financial Information Conference 2024, ESSEC Amundi Webinar 2024, NTHU-UNSW Symposium on Sustainable Finance and Economics 2024, Frankfurt School of Finance & Management* 

This paper introduces a novel firm-level green innovation measure using ClimateBERT and GPT-3 to analyze earnings call transcripts. The measure captures a broader range of innovative activities beyond patents and distinguishes between invention and adoption dimensions of such efforts. These dimensions reveal distinctive geographical and industry patterns as well as key determinants. Firms engaged in green innovation, including many from carbon-intensive sectors, exhibit lower expected returns than their industry peers, likely due to improved environmental performance and ability to hedge against transition risk. The effects extend to non-patentable inventions and the widespread adoption of green innovations.

* Presentation by co-author.