The Impact of Climate Policy on Oil and Gas Investment: Evidence from Firm-Level Data

Using a text-based firm-level measure of climate policy exposure, we show that climate policies have led to a global decline of 6.5 percent in investment among publicly traded oil and gas companies between 2015 and 2019, with European companies experiencing the most significant impact. Similarly, cl...

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Bibliographic Details
Main Author: Bogmans, Christian
Other Authors: Pescatori, Andrea, Prifti, Ervin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Impact of Climate Policy on Oil and Gas Investment: Evidence from Firm-Level Data  |c Christian Bogmans, Andrea Pescatori, Ervin Prifti 
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653 |a Taxes 
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653 |a Climate change 
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653 |a Environmental Economics: Government Policy 
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653 |a Taxation 
653 |a Petroleum, oil & gas industries 
653 |a Climatic changes 
653 |a Environmental policy 
653 |a Single Equation Models 
653 |a Economic & financial crises & disasters 
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653 |a Environment 
653 |a Environmental impact charges 
653 |a Economics: General 
653 |a Informal sector; Economics 
653 |a Economic sectors 
653 |a Petroleum industry and trade 
653 |a Nonrenewable Resources and Conservation: General 
653 |a Prices 
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520 |a Using a text-based firm-level measure of climate policy exposure, we show that climate policies have led to a global decline of 6.5 percent in investment among publicly traded oil and gas companies between 2015 and 2019, with European companies experiencing the most significant impact. Similarly, climate policy uncertainty has also had a negative impact. Results support the Neoclassical investment model, which predicts a pre-emptive cut in investment in reaction to downward shifts in prospective demand, in contrast with the “green paradox” that predicts an increase in current investment to shift production toward the present