The Economic Geography of Fossil Fuel Divestment, Environmental Policies and Oil and Gas Financing

29 Pages Posted: 7 May 2019

See all articles by Theodor Cojoianu

Theodor Cojoianu

University College Dublin (UCD) - Michael Smurfit Graduate School of Business; University of Oxford - Smith School of Enterprise and the Environment

Francisco Ascui

University of Edinburgh - Edinburgh Business School

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment

Andreas G. F. Hoepner

Smurfit Graduate Business School, University College Dublin; Stockholm School of Economics - Mistra Financial Systems (MFS); European Commission's Technical Expert Group for Sustainable Finance

Dariusz Wojcik

University of Oxford, St. Peter's College

Date Written: April 22, 2019

Abstract

This paper explores how fossil fuel divestment commitments and environmental policies have shaped the geography of capital flows into the oil and gas sector, based on the analysis of syndicated lending, equity and bond underwriting across 33 countries from 2000 to 2015. We find that the value of total assets pledged for divestment in a given country is negatively associated with capital flows to domestic oil and gas companies, particularly when divestment is led by regional or sovereign governments. Amongst environmental policy instruments, emissions trading schemes and renewables feed-in tariffs have been most impactful in reducing oil and gas sector capital inflows.

Keywords: fossil fuel divestment, oil and gas finance, environmental policies, environmental finance

JEL Classification: G20, G30, Q28, Q32, Q38, Q50

Suggested Citation

Cojoianu, Theodor and Ascui, Francisco and Clark, Gordon L. and Hoepner, Andreas G. F. and Wojcik, Dariusz, The Economic Geography of Fossil Fuel Divestment, Environmental Policies and Oil and Gas Financing (April 22, 2019). Available at SSRN: https://ssrn.com/abstract=3376183 or http://dx.doi.org/10.2139/ssrn.3376183

Theodor Cojoianu (Contact Author)

University College Dublin (UCD) - Michael Smurfit Graduate School of Business ( email )

Blackrock, Co. Dublin
Ireland

University of Oxford - Smith School of Enterprise and the Environment ( email )

United Kingdom

Francisco Ascui

University of Edinburgh - Edinburgh Business School ( email )

29 Buccleuch Pl
Edinburgh, Scotland EH8 9JS
United Kingdom

Gordon L. Clark

Oxford University - Smith School of Enterprise and the Environment ( email )

South Parks Road
Oxford, OX1 3QY
United Kingdom
+44 1865 285197 (Phone)
+44 1865 285073 (Fax)

HOME PAGE: http://www.geog.ox.ac.uk/staff/glclark.html

Andreas G. F. Hoepner

Smurfit Graduate Business School, University College Dublin ( email )

Blackrock, Co. Dublin
Ireland

Stockholm School of Economics - Mistra Financial Systems (MFS) ( email )

MISUM
Box 6501, SE-113 83 Stockholm
Sweden

European Commission's Technical Expert Group for Sustainable Finance ( email )

2 Rue de Spa
Brussels, 1000
Belgium

Dariusz Wojcik

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

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