Are financial markets aligned with the Paris Agreement?
Master thesis
Permanent lenke
https://hdl.handle.net/11250/3019277Utgivelsesdato
2022Metadata
Vis full innførselSamlinger
Beskrivelse
Full text not available
Sammendrag
This paper seeks to answer if a financial effect altered the energy sector after theannouncements of adopting the Paris Agreement on the 12th of December 2015; and the UnitedStates’ withdrawal from the Paris Agreement on the 1st of June 2017. It is generally acceptedby similar research, that the adoption of the Paris Agreement will show a positive effect onrenewable energy stocks, and a negative reaction on fossil fuel energy stocks. For thewithdrawal, it is expected the opposite effect. However, there is a lack of academic research onthe effect on fossil fuel energy stocks after the announcement of the U.S. withdrawal. A shortwindow event study is considered the optimal methodology to observe new informationreflected in financial markets, but an event study is also exposed to other price-driving factors.Our findings indicate that financial reactions on energy stocks do not align with newinformation on climate committing action related to the Paris Agreement.