Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes

46 Pages Posted: 24 Mar 2020

See all articles by Stefano Ramelli

Stefano Ramelli

University of Zurich - Department of Banking and Finance

Elisa Ossola

European Commission, Joint Research Centre

Michela Rancan

Polytechnic University of Marche

Date Written: February 26, 2020

Abstract

The first Global Climate Strike on March 15, 2019 has represented a historical turn in climate activism. We investigate the cross-section of European stock price reactions to this event. Looking at a large sample of European firms, we find that the unanticipated success of this event caused a substantial stock price reaction on high-carbon intensity companies. These findings are likely driven by an update of investors' beliefs about the level of environmental social norms in the economy and the anticipation of future developments of climate regulation.

Keywords: Climate Risks, Stock Returns, Event Study, Environmental Preferences, Sustainable Finance, Investor Attention

JEL Classification: Q01, G14, G40, G23

Suggested Citation

Ramelli, Stefano and Ossola, Elisa and Rancan, Michela, Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes (February 26, 2020). Available at SSRN: https://ssrn.com/abstract=3544669 or http://dx.doi.org/10.2139/ssrn.3544669

Stefano Ramelli (Contact Author)

University of Zurich - Department of Banking and Finance ( email )

Plattenstrasse 14
Z├╝rich, 8032
Switzerland
+41446342953 (Phone)

Elisa Ossola

European Commission, Joint Research Centre ( email )

Belgium

Michela Rancan

Polytechnic University of Marche ( email )

Piazzale Martelli 8
Ancona, 18039
Italy

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