EconPapers    
Economics at your fingertips  
 

War and Policy: Investor Expectations on the Net-Zero Transition

Ming Deng, Markus Leippold, Alexander Wagner and Qian Wang
Additional contact information
Ming Deng: University of Zurich - Department of Banking and Finance; Swiss Finance Institute
Markus Leippold: University of Zurich; Swiss Finance Institute
Qian Wang: University of Zurich - Department of Banking and Finance; Inovest Partners AG

No 22-29, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: This study employs novel text-based proxies to analyze corporate exposure to regulatory risks in the low-carbon transition. In response to the Russia-Ukraine war, stocks with higher transition risk outperformed, suggesting an expected slowdown in the transition. These effects were far more pronounced in the US than Europe, where renewable energy policy support was anticipated. The US Inflation Reduction Act (IRA) and the REPowerEU plan increased the value of firms with renewable energy opportunities, but the IRA also benefited higher transition risk firms. Overall, the findings highlight an international divergence in the energy transition pace.

Keywords: Climate transition risk; energy; ESG; event study; inflation; Inflation Reduction Act; resilience; regulation; REPowerEU; Russia-Ukraine war; stock returns (search for similar items in EconPapers)
JEL-codes: E3 G01 G14 Q54 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2022-04, Revised 2023-05
New Economics Papers: this item is included in nep-cis, nep-ene, nep-env, nep-fmk, nep-mac and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4080181 (application/pdf)

Related works:
Working Paper: War and Policy: Investor Expectations on the Net-Zero Transition (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2229

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().

 
Page updated 2025-03-19
Handle: RePEc:chf:rpseri:rp2229