Mutual fund investor response to climate activism: Evidence from the 2019 Global Climate Strike

Fei Fang and Sitikantha Parida

Economic Modelling, 2025, vol. 151, issue C

Abstract: This study examines the impact of the March 2019 Global Climate Strike on U.S. mutual fund flows, addressing a gap in the literature on how climate activism influences fund investment behavior. Using a sample of U.S. equity funds and an event study methodology, we find that low-carbon funds receive significantly higher net inflows than high-carbon funds during the strike month and the following two months. This effect is stronger for retail investors relative to institutional investors. Additionally, the study examines the impact of Morningstar's continuous carbon risk metrics on investment decisions. Together, our findings suggest that the climate strike heightened awareness of climate risks, prompting increased investment in low-carbon funds. This response underscores the effectiveness of climate activism in driving investment toward a low-carbon economy.

Keywords: Climate activism; Climate strike; Low-carbon funds; Mutual funds (search for similar items in EconPapers)
JEL-codes: G11 G23 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:151:y:2025:i:c:s0264999325001920

DOI: 10.1016/j.econmod.2025.107197

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