Template-Type: ReDIF-Paper 1.0
Author-Name: Louisa Chen
Author-X-Name-First: Louisa
Author-X-Name-Last: Chen
Author-Name: Koji Takahashi
Author-X-Name-First: Koji
Author-X-Name-Last: Takahashi
Title: The road to net zero: a fund flow investigation
Abstract: We analyze how U.S. green and brown energy equity mutual funds and ETFs respond to public attention on climate change from 2006 to 2022. Our findings indicate that green fund inflows consistently increased, peaking in 2020 in reaction to climate news, while brown fund inflows steadily declined. This shift toward green investments may discourage brown investments and help mitigate the negative impacts of climate news on stock market and industry production growth. The pace of transition from brown to green funds aligns with changes in U.S. climate policy, with a faster transition associated with positive stock market performance and industry production growth.
Creation-Date: 2024-10
File-URL: https://www.bis.org/publ/work1220.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1220.htm
File-Format: text/html
Number: 1220
Keywords: green and brown fund flows, climate change news, evolving transition, pace of transition
Classification-JEL: G11, G23, Q43, Q54
Handle: RePEc:bis:biswps:1220