Download This PaperInternational Climate News
69 Pages Posted: 29 Feb 2024 Last revised: 31 Mar 2025
Date Written: June 28, 2023
Abstract
We develop novel high-frequency indices that measure climate attention across a wide range of developed and emerging economies. By analyzing the text of over 23 million Tweets published by leading national newspapers, we find that a country experiencing more severe climate news shocks tends to see both an inflow of capital and an appreciation of its currency. In addition, brown stocks experience large and persistent negative returns after a global climate news shock if located in highly exposed countries. A risk-sharing model in which investors price climate news shocks and trade consumption and investment goods in global markets rationalizes these findings.
Keywords: International Climate Indices, Text Analysis, Trade, Currencies. JEL Classification: F3, F4, G1
JEL Classification: F3, F4, G1
Suggested Citation: Suggested Citation
Riccardo Colacito
University of North Carolina Kenan-Flagler Business School ( email )
Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States
HOME PAGE: http://drric.web.unc.edu/