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Samsom Mukanjari

Samson Mukanjari

Associate senior lecturer

Samsom Mukanjari

Do markets Trump politics? Fossil and renewable market reactions to major political events

Author

  • Samson Mukanjari
  • Thomas Sterner

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