Geoclimate, geopolitics, and the geovolatility of carbon-intensive equity returns

Working paper

The systemic implications on carbon-intensive equity prices of the disruptive technological progress from decarbonising the global energy system are com pounded by the geopolitical nature of both the global oil market and transition risk. We show empirically that climate change news affects oil and gas stock return volatilities at the global scale. But not all geoclimatic shocks are alike. Climate change news increases global uncertainty around carbon-intensive equities and it amplifies the e...

Expand abstract

Authors: Campos-Martins, S; Hendry, D

• Publication status: Published
• Publisher: University of Oxford Publisher's website
• Series: Department of Economics Discussion Paper Series
• Article number: 948
• Publication date: 2021-09-28
• Paper number: 948
• Language: English
• Keywords: transition risk; financial volatility shocks; volatility factor models; geoclimatic volatility shocks; carbon-intensive equities