
Samson Mukanjari
Associate senior lecturer

Do markets Trump politics? Fossil and renewable market reactions to major political events
Author
Summary, in English
We investigate the effects of three events with major importance for climate policy on energy sector stocks: the Paris Agreement, the Trump election and presidency, and the Biden election. By combining event studies with impulse-indicator saturation methods, we show that the Paris Agreement and the election of Mr. Biden benefited renewable industries, while the election of Mr. Trump had negative effects. For fossil fuel industries, the effects were largely the opposite. Despite Trump's efforts to eliminate environmental regulations, his presidency did however witness a decrease in both US coal production and consumption, while natural gas and oil consumption increased.
Department/s
- The International Institute for Industrial Environmental Economics
Publishing year
2024-03-13
Language
English
Pages
805-836
Publication/Series
Economic Inquiry
Volume
62
Issue
2
Document type
Journal article
Publisher
Wiley-Blackwell
Topic
- Economics and Business
Keywords
- climate policy
- elections
- energy
- event study
- Paris Agreement
- Stock returns
- stranded assets
Status
Published
ISBN/ISSN/Other
- ISSN: 1465-7295