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Greenhouse gas emissions and stock market volatility: an empirical analysis of OECD countries

Greenhouse gas emissions and stock market volatility: an empirical analysis of OECD countries This study aims to explore empirical evidence of the impact of greenhouse gas (GHG) emissions on stock market volatility.Design/methodology/approachUsing 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.FindingsThe 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/valueThis study contributes to the literature in that it provides additional empirical evidence for the financial risk posed by climate change. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Climate Change Strategies and Management Emerald Publishing

Greenhouse gas emissions and stock market volatility: an empirical analysis of OECD countries

Greenhouse gas emissions and stock market volatility: an empirical analysis of OECD countries


Abstract

This study aims to explore empirical evidence of the impact of greenhouse gas (GHG) emissions on stock market volatility.Design/methodology/approachUsing 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.FindingsThe 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/valueThis study contributes to the literature in that it provides additional empirical evidence for the financial risk posed by climate change.

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References (100)

Publisher
Emerald Publishing
Copyright
© Jung Hee Noh and Heejin Park.
ISSN
1756-8692
eISSN
1756-8692
DOI
10.1108/ijccsm-10-2021-0124
Publisher site
See Article on Publisher Site

Abstract

This study aims to explore empirical evidence of the impact of greenhouse gas (GHG) emissions on stock market volatility.Design/methodology/approachUsing 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.FindingsThe 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/valueThis study contributes to the literature in that it provides additional empirical evidence for the financial risk posed by climate change.

Journal

International Journal of Climate Change Strategies and ManagementEmerald Publishing

Published: Jan 6, 2023

Keywords: OECD; Greenhouse gas; Climate change; Stock market volatility; F64; G10; Q54

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