Investor Rewards to Climate Responsibility: Evidence from the 2016 Climate Policy Shock /

Donald Trump's election and his nomination of Scott Pruitt, a climate skeptic, to lead the Environmental Protection Agency drastically downshifted expectations on US climate-change policy. We study firms' stock-price reactions and institutional investors' portfolio adjustments after t...

Ausführliche Beschreibung

Gespeichert in:
Weitere Titel:
Investor Rewards to Climate Responsibility
1. Verfasser:
Ramelli, Stefano
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Wagner, Alexander F., Zeckhauser, Richard J., Ziegler, Alexandre
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2018.
Zusammenfassung:
Donald Trump's election and his nomination of Scott Pruitt, a climate skeptic, to lead the Environmental Protection Agency drastically downshifted expectations on US climate-change policy. We study firms' stock-price reactions and institutional investors' portfolio adjustments after these events. As expected, carbon-intensive firms benefited. Should not companies with responsible strategies on climate change have lost value, since they were paying for actions that were now less urgent? In fact, investors actually rewarded such firms. The premium the firms received resulted, at least in part, from the move into climate-responsible stocks by long-horizon investors presumably expecting a post-Trump rebound to green policy.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
November 2018.
Schlagworte: