The political economy of climate change negotiations
What factors affect countries’ commitment to mitigating climate change?
Countries differ greatly on who should bear the cost of climate-change mitigation initiatives, with friction between developing and developed economies the main impediment to progress on agreements. What drives a country’s position on climate change and what factors determine its bargaining power? This study aims to create a dataset of national positions and the bargaining power of countries during negotiations on mitigation agreements: any research endeavour that contributes to a solution could, literally, help save the planet.
WORLDWIDE
Publications
The Real Effects of Environmental Activist Investing
Abstract
We study the real effects of environmental activist investing. Using plant-level data, we find that targeted firms reduce their toxic releases, greenhouse gas emissions, and cancer-causing pollution. Improvements in air quality within a one-mile radius of targeted plants suggest potentially important externalities to local economies. These improvements come through increased capital expenditures on new abatement initiatives. We rule out alternative explanations of decline in production, reporting biases, and forms of selection, while also providing evidence supporting the external validity of environmental activism. Overall, our study suggests that engagements are an effective tool for long-term shareholders to address climate change risks.