IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-18-24.html
   My bibliography  Save this paper

Do Markets Trump Politics? Fossil Fuel Market Reactions to the Paris Agreement and the US Election

Author

Listed:
  • Mukanjari, Samson
  • Sterner, Thomas

    (Resources for the Future)

Abstract

How can event studies in financial markets best be used to evaluate policy? We take the example of climate policy and the issue of whether world climate policy is effective. Environmentalists claim too little is done. Industry argues policy is too interventionist and warns that stranding significant assets could lead to financial instability. We evaluate the impact of global climate policymaking by studying the impact of the election of President Trump and of the Paris climate agreement on the stock market value of energy sector firms. Using event study and impulse-indicator saturation methods, we show that both events had only moderate effects on the value of fossil fuel firms.

Suggested Citation

  • Mukanjari, Samson & Sterner, Thomas, 2018. "Do Markets Trump Politics? Fossil Fuel Market Reactions to the Paris Agreement and the US Election," RFF Working Paper Series 18-24, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-18-24
    as

    Download full text from publisher

    File URL: https://www.rff.org/documents/1825/RFF20WP2018-2420final20dc.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-18-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.