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 | |
| Publication status | Published - Mar 2025 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 7 Affordable and Clean Energy -
SDG 13 Climate Action
Free Keywords
- availability bias
- policy shock
- social trust
ASJC Scopus subject areas
- Accounting
- General Economics,Econometrics and Finance
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