Greenhouse gas emissions and stock market volatility: an empirical analysis of OECD countries
Purpose – This study aims to explore empirical evidence of the impact of greenhouse gas (GHG) emissions on stock market volatility. Design/methodology/approach – Using panel data of 35 Organization for Economic Co-operation and Development countries from 1992 to 2018, we conduct both fixed effects p...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2023-01-01
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| Series: | International Journal of Climate Change Strategies and Management |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/IJCCSM-10-2021-0124/full/pdf |
| Summary: | Purpose – This study aims to explore empirical evidence of the impact of greenhouse gas (GHG) emissions on stock market volatility. Design/methodology/approach – Using panel data of 35 Organization for Economic Co-operation and Development countries from 1992 to 2018, we conduct both fixed effects panel model and Prais-Winsten model with panel-corrected standard errors. Findings – The authors document that there is a significant positive relationship between GHG emissions and stock market volatility. The results remain robust after controlling for potential endogeneity problems. Originality/value – This study contributes to the literature in that it provides additional empirical evidence for the financial risk posed by climate change. |
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| ISSN: | 1756-8692 |