The Effects of the Paris Agreement on Stock Markets: Evidence from Clean Energy Stocks
These authors contributed equally to this work and should be considered co-second authors
- 10.2991/assehr.k.211209.245How to use a DOI?
- Climate Change; Paris Agreement; Stock Market; Green Indices; Event Study
The threats presented by climate change have led to an increasing number of international environmental treaties. In this paper, the effects of the 2016 Paris Agreement on investment behaviors are specifically investigated. By applying the event study methodology, a market model based on S&P Broad Market Index is used to compute cumulative abnormal returns (CAR) of S&P Global Clean Energy Index. Overall, the treaty had limited effects on green companies: though a temporary positive effect was shown after the announcement, the implementation appeared to have a statistically negative impact. Furthermore, a linear regression test run between the market capitalization of 6 representative companies and their individual CARs suggest that the differential effect depends both on the scale and the locations of the companies. This work aims to evaluate the effectiveness of climate change treaties and sheds light on potential improvements for further research.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Jianing Kuang AU - Ruochen Zhou AU - Diandian Shi AU - Zhengyang Cai PY - 2021 DA - 2021/12/15 TI - The Effects of the Paris Agreement on Stock Markets: Evidence from Clean Energy Stocks BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 1507 EP - 1513 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.245 DO - 10.2991/assehr.k.211209.245 ID - Kuang2021 ER -