SNPE - The Impact Of Investor Climate Sentiment On Financial Markets
- People revise their beliefs about climate change upwards when experiencing abnormal temperatures and retail investors sell stocks of carbon-intensive firms in such weather conditions.
- Investor' climate sentiment is higher either when an international environmental disaster occurs or there is an international event related to climate change.
- Investors' climate sentiment generates a temporary mispricing in the EMC (emissions-minus-clean) portfolio that invests in emission stocks and goes short on clean stocks.
- Climate sentiment is challenging to predict.
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The Impact Of Investor Climate Sentiment On Financial Markets