Climate policy and international capital reallocation / Marius Fourné, Xiang Li ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association

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1920684824

URN

urn:nbn:de:gbv:3:2-1130032

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Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2025?]

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1 Online-Ressource (III, 45 Seiten, Seite A1-A17, 1,07 MB) : Diagramme

Ausgabevermerk

This version: March 10, 2025

Sprache

eng

Anmerkungen

Literaturverzeichnis: Seite 41-45

Inhaltliche Zusammenfassung

This study employs bilateral data on external assets to examine the impact of climate policies on the reallocation of international capital. We find that the stringency of climate policy in the destination country is significantly and positively associated with an increase in the allocation of portfolio equity and banking investment to that country. However, it does not show significant effects on the allocation of foreign direct investment and portfolio debt. Our findings are not driven by valuation effects, and we present evidence that suggests diversification, suasion, and uncertainty mitigation as possible underlying mechanisms.

Schriftenreihe

IWH-Diskussionspapiere ; 2024, no. 20 (September 2024) [rev.] ppn:837399270

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