How Policy Changes Affect Shareholder Wealth: The Case of the Fukushima Daiichi Nuclear Disaster

André Betzer, Markus Doumet and Ulf Rinne
Additional contact information
André Betzer: University of Wuppertal
Markus Doumet: University of Mannheim

No sdp11011, Schumpeter Discussion Papers from Universitätsbibliothek Wuppertal, University Library

Abstract: 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.

Keywords: Electric Power; Nuclear Power; Green Economy; Earthquake; Tsunami; Event Study; Environment (search for similar items in EconPapers)
JEL-codes: G38 Q48 Q54 (search for similar items in EconPapers)
Pages: 33
Date: 2011-07
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: How policy changes affect shareholder wealth: the case of the Fukushima Dai-ichi nuclear disaster (2013)
Working Paper: How Policy Changes Affect Shareholder Wealth: The Case of the Fukushima Daiichi Nuclear Disaster (2011)
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