Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes

Stefano Ramelli (), Elisa Ossola () and Michela Rancan
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Stefano Ramelli: University of Zurich

No 2020-03, JRC Working Papers in Economics and Finance from Joint Research Centre, European Commission

Abstract: The First Global Climate Strike on March 15, 2019 has represented a historical turn in climate activism. We investigate the cross-section of European stock price reactions to this event. Looking at a large sample of European firms, we find that the unanticipated success of this event caused a substantial stock price reaction on high-carbon intensity companies. These findings are likely driven by an update of investors' beliefs about the level of environmental social norms in the economy and the anticipation of future developments of climate regulation.

Keywords: climate risks; stock returns; event study; environmental preferences; sustainable finance; investor attention (search for similar items in EconPapers)
JEL-codes: G14 G23 G40 Q01 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2020-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-fmk and nep-rmg
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Citations: View citations in EconPapers (9)

Published by Publications Office of the European Union, 2020

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Persistent link: https://EconPapers.repec.org/RePEc:jrs:wpaper:202003

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