The Effects of Paris Climate Agreement on Stock Markets: Evidence from the German Stock Exchange

Huy, P and Nguyen, V 2017, 'The Effects of Paris Climate Agreement on Stock Markets: Evidence from the German Stock Exchange', in Pham Thi Minh Ly, Jindřich Soukup, Phan Dao, Phung, Minh Tuan (ed.) Proceedings of the 4th International Conference on Finance and Economics (ICFE 2017), Ho Chi Minh City, Vietnam, 21-22 September 2017, pp. 44-54.


Document type: Conference Paper
Collection: Conference Papers

Title The Effects of Paris Climate Agreement on Stock Markets: Evidence from the German Stock Exchange
Author(s) Huy, P
Nguyen, V
Year 2017
Conference name ICFE 2017: Innovation and Sustainable Entrepreneurship
Conference location Ho Chi Minh City, Vietnam
Conference dates 21-22 September 2017
Proceedings title Proceedings of the 4th International Conference on Finance and Economics (ICFE 2017)
Editor(s) Pham Thi Minh Ly, Jindřich Soukup, Phan Dao, Phung, Minh Tuan
Publisher Libue Macáková - Melandrium
Place of publication Czech Republic
Start page 44
End page 54
Total pages 11
Abstract The paper investigates the effects of the 2016 Paris Climate Agreement on the German stock market. Our sample includes 20 announcements around the Paris Climate Agreement and 17 industries in Germany. We adopt and modify event study methodology developed by Brown and Warner (1980, 1985) and find that Paris Climate Agreement affected polluting industries in the short-term in terms of risk and return. Furthermore, we observed diamond risk structures when (1) COP 21 took place and (2) Paris Climate Agreement came into force. Our results suggest that Paris Climate Agreement is achieving its objectives in the short term.
Subjects Financial Economics
Keyword(s) Paris Climate Agreement
Event Study
Abnormal Return
Systematic Risk
Diamond Risk Structure
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ISBN 9788087990117
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