The impact of climate policy on U.S. environmentally friendly firms: A firm-level examination of stock return, volatility, volume, and connectedness

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dc.citation.volume119
dc.contributor.authorPham L
dc.contributor.authorHao W
dc.contributor.authorTruong H
dc.contributor.authorTrinh HH
dc.date.accessioned2024-07-15T21:18:56Z
dc.date.available2024-07-15T21:18:56Z
dc.date.issued2023-03
dc.description.abstractThis paper investigates the green stock market reaction to climate policy events associated with the Paris Agreement and the U.S. presidential elections. We document abnormal returns, volatility and volume reactions to climate policy events among green stocks. However, the magnitude of the reactions varies between the tightening and loosening of climate policy and across subgroups of the green stock markets. Our connectedness analysis further investigates the spillover patterns among individual green stocks and confirms their heterogeneous natures when responding to the occurrence of these climate policy events. By constructing a minimum connectedness portfolio based on the estimated connectedness among these green stocks, we find that investors can substantially reduce their risks. Our findings have strong implications for policy makers in designing policies to effectively promote green investments and mitigate climate change.
dc.description.confidentialfalse
dc.edition.editionMarch 2023
dc.identifier.citationPham L, Hao W, Truong H, Trinh HH. (2023). The impact of climate policy on U.S. environmentally friendly firms: A firm-level examination of stock return, volatility, volume, and connectedness. Energy Economics. 119.
dc.identifier.doi10.1016/j.eneco.2023.106564
dc.identifier.eissn1873-6181
dc.identifier.elements-typejournal-article
dc.identifier.issn0140-9883
dc.identifier.number106564
dc.identifier.piiS0140988323000622
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/70186
dc.languageEnglish
dc.publisherElsevier B V
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S0140988323000622
dc.relation.isPartOfEnergy Economics
dc.rights(c) 2023 The Author/s
dc.rightsCC BY 4.0
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectClean energy
dc.subjectClimate policy
dc.subjectFirm-level analysis
dc.subjectEvent study
dc.subjectConnectedness
dc.subjectPortfolio implications
dc.titleThe impact of climate policy on U.S. environmentally friendly firms: A firm-level examination of stock return, volatility, volume, and connectedness
dc.typeJournal article
pubs.elements-id459713
pubs.organisational-groupOther
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