Climate policy shocks and crowdfunding success of renewable technology campaigns

Sirui Cheng; Xiuping Hua; Jiadong Peng; Huayi Zhang

doi:10.1111/eufm.12523

Climate policy shocks and crowdfunding success of renewable technology campaigns

Sirui Cheng, Xiuping Hua, Jiadong Peng, Huayi Zhang

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

1 Citation (Scopus)

Abstract

This study uses Trump's withdrawal from the Paris Accord as an exogenous policy shock and investigates its impact on crowdfunding outcomes. We find that this major policy change negatively affects the funding success of renewable technology campaigns. Mechanism tests suggest that social trust and availability bias transmit the influence of climate policy shock on crowd backers' decisions. Further analyses indicate that Biden's consequential policy reversal recovers the investors' support towards renewable technology. Overall, the Trump administration's climate policy shock induces significant shifts in the consumption preferences of small investors and incurs negative externalities upon renewable technology in crowdfunding markets.

Original language	English
Pages (from-to)	876-908
Number of pages	33
Journal	European Financial Management
Volume	31
Issue number	2
DOIs	https://doi.org/10.1111/eufm.12523
Publication status	Published - Mar 2025

Keywords

availability bias
policy shock
social trust

ASJC Scopus subject areas

Accounting
General Economics,Econometrics and Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/eufm.12523

Cite this

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title = "Climate policy shocks and crowdfunding success of renewable technology campaigns",

abstract = "This study uses Trump's withdrawal from the Paris Accord as an exogenous policy shock and investigates its impact on crowdfunding outcomes. We find that this major policy change negatively affects the funding success of renewable technology campaigns. Mechanism tests suggest that social trust and availability bias transmit the influence of climate policy shock on crowd backers' decisions. Further analyses indicate that Biden's consequential policy reversal recovers the investors' support towards renewable technology. Overall, the Trump administration's climate policy shock induces significant shifts in the consumption preferences of small investors and incurs negative externalities upon renewable technology in crowdfunding markets.",

keywords = "availability bias, policy shock, social trust",

author = "Sirui Cheng and Xiuping Hua and Jiadong Peng and Huayi Zhang",

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year = "2025",

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doi = "10.1111/eufm.12523",

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AU - Cheng, Sirui

AU - Hua, Xiuping

AU - Peng, Jiadong

AU - Zhang, Huayi

PY - 2025/3

Y1 - 2025/3

N2 - This study uses Trump's withdrawal from the Paris Accord as an exogenous policy shock and investigates its impact on crowdfunding outcomes. We find that this major policy change negatively affects the funding success of renewable technology campaigns. Mechanism tests suggest that social trust and availability bias transmit the influence of climate policy shock on crowd backers' decisions. Further analyses indicate that Biden's consequential policy reversal recovers the investors' support towards renewable technology. Overall, the Trump administration's climate policy shock induces significant shifts in the consumption preferences of small investors and incurs negative externalities upon renewable technology in crowdfunding markets.

AB - This study uses Trump's withdrawal from the Paris Accord as an exogenous policy shock and investigates its impact on crowdfunding outcomes. We find that this major policy change negatively affects the funding success of renewable technology campaigns. Mechanism tests suggest that social trust and availability bias transmit the influence of climate policy shock on crowd backers' decisions. Further analyses indicate that Biden's consequential policy reversal recovers the investors' support towards renewable technology. Overall, the Trump administration's climate policy shock induces significant shifts in the consumption preferences of small investors and incurs negative externalities upon renewable technology in crowdfunding markets.

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KW - policy shock

KW - social trust

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JO - European Financial Management

JF - European Financial Management

IS - 2

ER -

Climate policy shocks and crowdfunding success of renewable technology campaigns

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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