How Policy Changes Affect Shareholder Wealth: The Case of the Fukushima Daiichi Nuclear Disaster
This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. We exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany’s nuclear reactors while safety checks were carried out, and a three-month moratorium on extending the lives of others. Using the event study methodology, our findings indicate a wealth transfer from nuclear energy companies to renewable energies companies in Germany. We moreover find that the joint market capitalization of these firms has decreased, but the amount of this combined decrease is small. Substantial heterogeneity in the shareholder wealth effects across European countries can be linked to different nuclear energy policies. The shareholder wealth of nuclear and conventional energy companies in the United States has been unaffected.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Snowberg, Erik & Wolfers, Justin & Zitzewitz, Eric, 2011.
"How Prediction Markets Can Save Event Studies,"
CEPR Discussion Papers
8351, C.E.P.R. Discussion Papers.
- Erik Snowberg & Justin Wolfers & Eric Zitzewitz, 2011. "How Prediction Markets can Save Event Studies," CAMA Working Papers 2011-07, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Erik Snowberg & Justin Wolfers & Eric Zitzewitz, 2011. "How Prediction Markets can Save Event Studies," CESifo Working Paper Series 3434, CESifo Group Munich.
- Erik Snowberg & Justin Wolfers & Eric Zitzewitz, 2011. "How Prediction Markets Can Save Event Studies," NBER Working Papers 16949, National Bureau of Economic Research, Inc.
- Snowberg, Erik & Wolfers, Justin & Zitzewitz, Eric, 2011. "How Prediction Markets Can Save Event Studies," IZA Discussion Papers 5640, Institute for the Study of Labor (IZA).
- Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
- Scholes, Myron & Williams, Joseph, 1977. "Estimating betas from nonsynchronous data," Journal of Financial Economics, Elsevier, vol. 5(3), pages 309-327, December.
- Justin Wolfers & Eric Zitzewitz, 2004.
03-025, Stanford Institute for Economic Policy Research.
- Thure Traber & Claudia Kemfert & Jochen Diekmann, 2011. "German Electricity Prices: Only Modest Increase Due to Renewable Energy Expected," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 7(6), pages 37-46.
- Gene M. Grossman & Alan B. Krueger, 1994.
"Economic Growth and the Environment,"
NBER Working Papers
4634, National Bureau of Economic Research, Inc.
- Choi, Eunho & Heshmati, Almas & Cho, Yongsung, 2010. "An Empirical Study of the Relationships between CO2 Emissions, Economic Growth and Openness," IZA Discussion Papers 5304, Institute for the Study of Labor (IZA).
- Jeffrey R. Brown & J. David Cummins & Christopher M. Lewis & Ran Wei, 2004.
"An Empirical Analysis of the Economic Impact of Federal Terrorism Reinsurance,"
NBER Working Papers
10388, National Bureau of Economic Research, Inc.
- Brown, Jeffrey R. & Cummins, J. David & Lewis, Christopher M. & Wei, Ran, 2004. "An empirical analysis of the economic impact of federal terrorism reinsurance," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 861-898, July.
- Hill, Joanne & Schneeweis, Thomas, 1983. " The Effect of Three Mile Island on Electric Utility Stock Prices: A Note," Journal of Finance, American Finance Association, vol. 38(4), pages 1285-92, September.
- Corrado, Charles J. & Zivney, Terry L., 1992. "The Specification and Power of the Sign Test in Event Study Hypothesis Tests Using Daily Stock Returns," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 27(03), pages 465-478, September.
- Fields, M. Andrew & Janjigian, Vahan, 1989. "The effect of Chernobyl on electric-utility stock prices," Journal of Business Research, Elsevier, vol. 18(1), pages 81-87, January.
- Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
- Corrado, Charles J., 1989. "A nonparametric test for abnormal security-price performance in event studies," Journal of Financial Economics, Elsevier, vol. 23(2), pages 385-395, August.
- Bowen, Robert M. & Castanias, Richard P. & Daley, Lane A., 1983. "Intra-Industry Effects of the Accident at Three Mile Island," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 18(01), pages 87-111, March.
- Fisher-Vanden, Karen & Thorburn, Karin S., 2011.
"Voluntary corporate environmental initiatives and shareholder wealth,"
Journal of Environmental Economics and Management,
Elsevier, vol. 62(3), pages 430-445.
- Fisher-Vanden, Karen & Thorburn, Karin S, 2008. "Voluntary Corporate Environmental Initiatives and Shareholder Wealth," CEPR Discussion Papers 6698, C.E.P.R. Discussion Papers.
- Boehmer, Ekkehart & Masumeci, Jim & Poulsen, Annette B., 1991. "Event-study methodology under conditions of event-induced variance," Journal of Financial Economics, Elsevier, vol. 30(2), pages 253-272, December.
- Claudia Kemfert & Thure Traber, 2011. "The Moratorium on Nuclear Energy: No Power Shortages Expected," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 1(1), pages 3-6.
- Jochen Diekmann, 2009. "Renewable Energy in Europe: Strong Political Will Required for Ambitious Goals," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 5(36), pages 242-250.
- Alon Brav & Paul A. Gompers, 2003. "The Role of Lockups in Initial Public Offerings," Review of Financial Studies, Society for Financial Studies, vol. 16(1), pages 1-29.
When requesting a correction, please mention this item's handle: RePEc:bwu:schdps:sdp11011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Hoffmann)
If references are entirely missing, you can add them using this form.