Carbon risks, stock prices… Bloomberg

Peter R. Orszag, Bloomberg, writes on a couple of studies showing that financial markets are taking account of carbon risk, here… Keep in mind that oil prices were in a bear market around the time of Paris accords (Dec 2015, 2016)…

“One of the new studies, by Christina Atanasova of Simon Fraser University and Eduardo Schwartz of the University of California, Los Angeles, examines North American oil producers. In a sample of almost 700 oil companies, they find that, after controlling for multiple other factors, stock market values are higher for producers with larger reserves. This would be consistent with the carbon bubble perspective.“

And this:

”In addition, the negative effect of reserve growth on valuations has been much stronger after the Paris Agreement than it was before. If the agreement helped to awaken markets to climate risks, this difference would make sense. ”