Measuring Chinese climate uncertainty

Kiryoung Lee and Juik Cho

International Review of Economics & Finance, 2023, vol. 88, issue C, 891-901

Abstract: We develop indices of Twitter-based Chinese Climate Uncertainty (TC-CU) and Climate Policy Uncertainty (TC-CPU) from 2010 to onward. Our indices spike with climate change-related presidential announcements, UN climate change conferences, climate change-related flood deaths, warning about melting glaciers in China’s Qilian mountains, and rising climate concerns regarding bitcoin mining, among many others. We find that TC-CPU can predict future US climate uncertainty and attention measures while US measures do not predict Chinese climate change measures. Moreover, TC-CU (TC-CPU) negatively predicts equity returns of small (value) firms. Finally, we find a decline in CO2 emissions in response to shocks to TC-CU.

Keywords: Twitter; Climate uncertainty; Climate policy uncertainty; China; Climate change (search for similar items in EconPapers)
JEL-codes: D80 G12 G15 G18 Q50 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:88:y:2023:i:c:p:891-901

DOI: 10.1016/j.iref.2023.07.004

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