Trump Reloaded – Green and Brown Energy Indexes Reaction to a New Climate Policy Era

Absztrakt (kivonat)

Donald Trump’s 2024 reelection, coupled with his pro-fossil fuel stance, reshaped market expectations around U.S. climate policy. Building on shifts seen in the election of 2016, our event study analyze the reactions of green and brown energy stock indexes. We observed that Trump’s victory led to gains in brown energy indexes and declines in green energy indexes, with their differential nearly doubling compared to 2016. Results reveal an immediate, concentrated market response on election day, aligning with economic expectations about policy impacts on climate-sensitive sectors.