Green technology and stock market performance, Public Economics

Assignment Help:

Green Technology and Stock Market Performance

Of late, markets have played significant role specially in regulating pollution. This has been achieved by publishing environmental performance of industries in the form of raw materials used, production process, pollution abatement policy adopted, conservation of resources, and methodologies adopted for output use and disposal. On the basis of such information, the stock markets evaluate the environmental performance of industries through stock values. Some countries including India have started green rating of pollution prone industries.

The regulation process works as follows: Normally an investor will look into overall performance of a unit before investing in it. If its production is not efficient due to various environmental problems, this will obviously reflect on the overall performance, and hence, the financial benefits. As a result, the environmentally inefficient industrial units with weak performance are rated low compared to the units with good performance. In other words, the industrial units with bad environmental performance have significant negative impact on stock values. Though relevant to both developed and developing countries, this practice has yielded good results in developing countries by effectively regulating the pollution activities of the industrial units. Some of the studies have estimated the loss of polluting firms in the stock market to be up to 11 per cent.

Table: Performance of  Stock Markets and Polluting Industry

2074_Green technology and stock market performance.png


Related Discussions:- Green technology and stock market performance

Tr and tc curves explain-open-access optimum, Explain the following: (Cr...

Explain the following: (Critically Depensated) Growth Function                         Sustainable Yield Functions                         Logistic Growth Function

Production possibility frontier, with the aid of labelled production possib...

with the aid of labelled production possibilty frontier explain the concept of opportunity cost

Public economics, explain the stages and various coordination mechanisms in...

explain the stages and various coordination mechanisms involved in policy process?

Mbis in developing economies, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Show the redistribution policy, Q. Show the Redistribution Policy? We k...

Q. Show the Redistribution Policy? We know that despite policy interventions the disparity of income has been increasing in nearly all the countries. United States is highly un

#title.public debt.., what is public debt. ? give complate information on p...

what is public debt. ? give complate information on public debt. ?

MULTI-UNIT FINANCE, WHAT ARE THE PRINCIPLES OF MULTI-UNIT FINANCE?

WHAT ARE THE PRINCIPLES OF MULTI-UNIT FINANCE?

Consumer surplus related to the price elasticity of demand, QUESTION: a...

QUESTION: a) How do returns to scale and returns to factor affect the shapes of the AC in the Long-run and short-run respectively? b) "Standard of living has to be measure

Healthy economic, 1.Suppose you are interested in assessing the value of a ...

1.Suppose you are interested in assessing the value of a statistical life for individuals. You ?nd a dataset on risk and wages. You consider running the following OLS regression.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd