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Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp01bn999689b
Title: DISASTERS, MAN-MADE AND NATURAL: THE EFFECTS OF OIL SPILLS AND HURRICANES IN THE GULF OF MEXICO ON CLEAN ENERGY STOCK PRICES
Authors: Strabo, John Jr.
Advisors: Brunnermeier, Smita
Department: Economics
Class Year: 2014
Abstract: In this thesis, I examine the effects of hurricanes and oil spills on the stock returns of clean energy companies. I use event study analysis to compare the stock returns of clean energy companies, tracked through the NYSE Bloomberg Americas Clean Energy Index, with the returns of the overall market, measured by the S&P 500 Index. I find the cumulative abnormal returns that result from four individual hurricanes and three individual oil spills that occurred in the Gulf of Mexico between 2006 and 2013. Both hurricanes and oil spills have similar effects on the oil and energy industry in the region and on oil and gasoline prices. I find that overall these events have a negative impact on clean energy stock returns. Likewise, hurricanes specifically have a negative impact on these returns as well. However, oil spills, on the other hand, have a positive impact on clean energy stock returns. The difference in the impact of oil spills as opposed to hurricanes may be because oil spills elicit a negative emotional reaction that creates additional incentives for investors or consumers to turn to alternative clean energy sources.
Extent: 64 pages
URI: http://arks.princeton.edu/ark:/88435/dsp01bn999689b
Type of Material: Princeton University Senior Theses
Language: en_US
Appears in Collections:Economics, 1927-2016

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