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Climate Events and Market Efficiency: An Event Study Analysis

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  • Asim, Meerab

Abstract

We examine market reactions to climate events using event study methodology on a final sample of 250 high-severity events (2000–2025) across US, EU, and Asian markets, which were filtered from a raw dataset of over 1.5 million events. Broad US indices (SPY, QQQ) show no significant event- day AR, while the US energy sector (XLE) exhibits a negative reaction (−6 bps, p

Suggested Citation

  • Asim, Meerab, 2025. "Climate Events and Market Efficiency: An Event Study Analysis," MPRA Paper 126500, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:126500
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    File URL: https://mpra.ub.uni-muenchen.de/126500/1/MPRA_paper_126500.pdf
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    References listed on IDEAS

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    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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