Politics and Alternative Energy Stocks: Evidence From the 2024 U.S. Presidential Election
Abstract
Utilizing an event study approach, we document a significant market overreaction toward low ESG firms (positively) and firms in the alternative energy sector (negatively) following the election of Donald Trump as the 45th president of the U.S. We also show that a firm’s ESG rating plays a role in abnormal returns. Our findings cast doubt on the resilience of sustainable investments against market shocks.
Fields of Study & Subjects
Sustainable Finance and Green Bonds
Financial Markets and Investment Strategies
Corporate Social Responsibility Reporting
Publication details
- Journal / source
- Energy RESEARCH LETTERS
- Volume
- 7
- Issue
- Early View
- Publication date
- 28 January 2026
- Language
- EN