Tuning into Climate Risks: Extracting Innovation from Television News for Clean Energy Firms

Wasim Ahmad, Mohammad Arshad Rahman, Suruchi Shrimali and Preeti Roy

Papers from arXiv.org

Abstract: This article develops multiple novel climate risk measures (or variables) based on the television news coverage by Bloomberg, CNBC, and Fox Business, and examines how they affect the systematic and idiosyncratic risks of clean energy firms in the United States. The measures are built on climate related keywords and cover the volume of coverage, type of coverage (climate crisis, renewable energy, and government & human initiatives), and media sentiments. We show that an increase in the aggregate measure of climate risk, as indicated by coverage volume, reduces idiosyncratic risk while increasing systematic risk. When climate risk is segregated, we find that systematic risk is positively affected by the physical risk of climate crises and transition risk from government & human initiatives, but no such impact is evident for idiosyncratic risk. Additionally, we observe an asymmetry in risk behavior: negative sentiments tend to decrease idiosyncratic risk and increase systematic risk, while positive sentiments have no significant impact. These findings remain robust to including print media and climate policy uncertainty variables, though some deviations are noted during the COVID-19 period.

Date: 2024-09, Revised 2024-11
New Economics Papers: this item is included in nep-ene, nep-env and nep-ipr
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2409.08701 Latest version (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:arx:papers:2409.08701

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().