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

Categories of mbis, Normal 0 false false false EN-IN ...

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

#titleprivatization.., does privatization decentralise economic power? disc...

does privatization decentralise economic power? discuss

Constructed market techniques, Normal 0 false false false ...

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

Objectives of seea, Normal 0 false false false EN-IN ...

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

Requisite modifications to national income accounts, Requisite Modification...

Requisite Modifications to National Income Accounts Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetE

Policy composition and policy reversal, Let us now consider a situation in ...

Let us now consider a situation in which we know the timing of a change in policy but are unsure about the composition of the future policy. The association of different policy co

Areas of managing a crisis situation, Question: You are the Head of the...

Question: You are the Head of the Public Relations Department of an airline company. Your Chief Executive has asked you to make a presentation on crisis management to senior s

Informal regulations on pollution, Normal 0 false false fal...

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

Production, Types of production function

Types of production function

Public relations plan, Select a current political, social or environmental ...

Select a current political, social or environmental issue that is receiving coverage in the media, or choose an organisation you feel needs a better public relations approach, and

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