---
title: Running Hot: Industrial Emissions and the Equity Premium
url: https://www.ml-quant.com/papers/ssrn/7631840/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7631840
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7631840
featured: 2026-10-23
citations: unknown
topic: Asset Pricing & Factors
---


# Running Hot: Industrial Emissions and the Equity Premium

When U.S. industry runs hot measured by carbon emissions, expected market returns fall 4.2 percentage points the next year, forecasting returns up to five years ahead.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7631840
- Identifier: SSRN 7631840
- Released: 2026-10-20
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors
- Authors: Yunlong Chen, Difang Huang, Ke Huang, Ye Zhou

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