Corporate Climate Lobbying

Markus Leippold, Zacharias Sautner and Tingyu Yu
Additional contact information
Markus Leippold: University of Zurich; Swiss Finance Institute
Zacharias Sautner: University of Zurich - Department of Banking and Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)
Tingyu Yu: University of Zurich - Department of Banking and Finance

No 24-14, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: A common concern is that ambitious climate policy is—at least in parts—obstructed by corporate lobbying activities. We quantify corporate anti- and pro-climate lobbying expenses, identify the largest corporate lobbyists and their motives, establish how climate lobbying relates to corporate business models, and document whether and how climate lobbying is priced in financial markets. Firms spend on average $295,921 per year on anti-climate lobbying ($164,991 on pro-climate lobbying). Recently, firms have tried to camouflage their climate lobbying activities. Large anti-climate lobbyists have more carbon-intensive business models and face more climate-related incidents in the future. Firms that spend more on anti-climate lobbying earn higher returns, probably because of a risk premium. Their stock prices went up when the Waxman-Markey Cap-and-Trade Bill failed, and down when the Inflation Reduction Act was announced.

Keywords: Corporate Lobbying; Climate Change; Stock Returns (search for similar items in EconPapers)
Pages: 67 pages
Date: 2024-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-eur
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4711812 (application/pdf)

Related works:
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:rp2414

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 ().