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Determinants and effects of country ESG controversy

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  • Beckmann, Joscha
  • Rogmann, Jennifer

Abstract

This paper provides a new perspective on the economic implications of Environmental, Social, and Governance (ESG) ratings. Using data for 152 countries, we introduce a new country measure which reflects controversies regarding ESG performance based on media coverage in real time. We evaluate our measure at the country and global level and over different frequencies, and illustrate that global ESG controversy is positively related to established policy uncertainty measures, but also displays distinct dynamics. In a second step, we evaluate cross-country determinants and show that political determinants, the structure of the energy sector, and GDP per capita affect ESG controversies. Finally, we show that ESG controversery has significant effects on the global level.

Suggested Citation

  • Beckmann, Joscha & Rogmann, Jennifer, 2024. "Determinants and effects of country ESG controversy," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000343
    DOI: 10.1016/j.eneco.2024.107326
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    Cited by:

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    3. Inmaculada Bel‐Oms, 2025. "Determinants and consequences of environmental, social and governance controversies. Status quo and limitations of recent empirical quantitative research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 2412-2437, March.
    4. Huang, Chongle & Hao, Simin & Ma, Limei, 2025. "The impact of ESG advantages on the economic development of neighboring regions," Energy Economics, Elsevier, vol. 145(C).
    5. Li, Ruiqian & Huang, Tong & Ramanathan, Ramakrishnan, 2026. "Turning perception into impact: ESG risk perception and ESG controversies," Research in International Business and Finance, Elsevier, vol. 81(C).
    6. Menghan Li & Qi Chen, 2025. "ESG Rating Disagreement and the Quality of Analysts' Forecasts: Information or Noise," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 3744-3760, October.
    7. Vu, Thanh Nam, 2025. "ESG performance and sustainability concerns exposure," Finance Research Letters, Elsevier, vol. 71(C).
    8. Zhang, Sheng & Yang, Yifu & Zhao, Yijie & Wang, Ya & Hao, Jiming, 2025. "ESG in Dynamic Stochastic General Equilibrium (DSGE): Driving Forces for SDGs," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 301-312.
    9. Gaies, Brahim & Chaâbane, Najeh & Adeosun, Opeoluwa Adeniyi & Sahut, Jean-Michel, 2025. "Climate transition risks, ESG sentiment and market value: Insights from the European stock market," Energy Economics, Elsevier, vol. 148(C).
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    11. Chen, Pei-Fen & Chen, Mei-Ping, 2025. "Do country sustainability practices matter to happiness?," Economic Modelling, Elsevier, vol. 152(C).

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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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