Stocks and energy shocks: The impact of energy accidents on stock market value

Bert Scholtens and Arieke Boersen

Energy, 2011, vol. 36, issue 3, 1698-1702

Abstract: We investigate how financial market participants value energy accidents. We employ an event study to look into the response of stock markets to 209 accidents. These accidents were derived from Sovacool’s (2008) database on major energy accidents from 1907 to 2007. It appears that the stock market in general does not show a significant reaction with respect to these accidents. This would suggest that financial market participants perceive energy accidents as being ‘part of the game’ and discount for most energy accidents already in the valuation of the energy industry.

Keywords: Energy accidents; Externalities; Stock market; Event study (search for similar items in EconPapers)
JEL-codes: D62 G14 Q40 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:36:y:2011:i:3:p:1698-1702

DOI: 10.1016/j.energy.2010.12.059

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