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Measuring Chinese climate uncertainty

Author

Listed:
  • Lee, Kiryoung
  • Cho, Juik

Abstract

We develop indices of Twitter-based Chinese Climate Uncertainty (TC-CU) and Climate Policy Uncertainty (TC-CPU) from 2010 to onward. Our indices spike with climate change-related presidential announcements, UN climate change conferences, climate change-related flood deaths, warning about melting glaciers in China’s Qilian mountains, and rising climate concerns regarding bitcoin mining, among many others. We find that TC-CPU can predict future US climate uncertainty and attention measures while US measures do not predict Chinese climate change measures. Moreover, TC-CU (TC-CPU) negatively predicts equity returns of small (value) firms. Finally, we find a decline in CO2 emissions in response to shocks to TC-CU.

Suggested Citation

  • Lee, Kiryoung & Cho, Juik, 2023. "Measuring Chinese climate uncertainty," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 891-901.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:891-901
    DOI: 10.1016/j.iref.2023.07.004
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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