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Corporate Climate Lobbying

Author

Listed:
  • Markus Leippold

    (University of Zurich; Swiss Finance Institute)

  • Zacharias Sautner

    (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI))

  • Tingyu Yu

    (University of Zurich - Department of Banking and Finance)

Abstract

A common concern is that ambitious climate policy is—at least in parts—obstructed by corporate lobbying activities. We quantify corporate anti- and pro-climate lobbying expenses, identify the largest corporate lobbyists and their motives, establish how climate lobbying relates to corporate business models, and document whether and how climate lobbying is priced in financial markets. Firms spend on average $295,921 per year on anti-climate lobbying ($164,991 on pro-climate lobbying). Recently, firms have tried to camouflage their climate lobbying activities. Large anti-climate lobbyists have more carbon-intensive business models and face more climate-related incidents in the future. Firms that spend more on anti-climate lobbying earn higher returns, probably because of a risk premium. Their stock prices went up when the Waxman-Markey Cap-and-Trade Bill failed, and down when the Inflation Reduction Act was announced.

Suggested Citation

  • Markus Leippold & Zacharias Sautner & Tingyu Yu, 2024. "Corporate Climate Lobbying," Swiss Finance Institute Research Paper Series 24-14, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2414
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    Keywords

    Corporate Lobbying; Climate Change; Stock Returns;
    All these keywords.

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