The Effect of the Japan 2011 Disaster on Nuclear and Alternative Energy Stocks Worldwide - An Event Study

Ferstl, Robert; Utz, Sebastian; Wimmer, M. H.

doi:10.2139/ssrn.1842544

Cited by 12 publications

(13 citation statements)

References 16 publications

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“…11 There are also a different kind of studies, event studies, that have looked at the impact of nuclear accidents on the stock prices of energy companies (Ferstl, et al 2012, Kawashima and Takeda 2012, Betzer, et al 2013, Basse Mama and Bassen 2013, Lopatta and Kaspereit 2014). …”

Section: Discussionmentioning

confidence: 99%

Electricity Externalities, Siting, and the Energy Mix: A Survey

Welsch

2016

IRERE

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWhile early literature on electricity externalities was largely concerned with fossil fuel power generation and the associated emissions, nuclear accidents (Chernobyl, Fukushima) and the large-scale deployment of renewable energy facilities have spurred a wave of research on the externalities of nuclear power and renewable energies. The issue is important because many countries have started reconsidering their energy policies, and the externalities from electricity generation play a major role in the benefit-cost analysis of relevant options. This paper reviews the literature on electricity-related externalities. It starts by discussing their nature and the methods employed in valuing them. It finds that appraisals of electricity externalities are complicated because of heterogeneity of both the externalities themselves and the methods applied in measuring them. The paper reviews valuation studies of the externalities from fossil fuel, nuclear and renewable sources, and it discusses the relevance of their findings for the siting of plants and the electricity mix. It concludes by pointing out gaps in our knowledge about electricity externalities that deserve to be addressed in future research.

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Section: Discussionmentioning

confidence: 99%

Electricity Externalities, Siting, and the Energy Mix: A Survey

Welsch

2016

IRERE

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“…The paper by Ferstl et al [2] implements an event study experiment to assess the effect of Fukushima disaster and consequent governments' decision on the stock market. Differently from prior literature this paper relies on a Fama-French model for stock returns instead of a simple market model.…”

Section: Impact Of Nuclear Disasters On Energy Markets: a Literatmentioning

confidence: 99%

“…Germany was heavily dependent on nuclear power; in 2010 over 22% of its power was from nuclear sources, but this decreased to less than 18% in 2011, the year of the earthquake [1] mainly as a result of the immediate closure for testing then subsequent permanent shutdown of six of the 17 plants producing nuclear energy in March 2011 (as well as two that were offline). As others have catalogued using event study methodologies ( [2], [3]), although the market-anticipated profit impact on German renewable companies is significant, the profit impact on German power companies is rather limited. But arguably of more importance is the impact on the German power market itself.…”

Section: Introductionmentioning

confidence: 99%

German energy market fallout from the Japanese earthquake

Grossi

Waterson

2013

2013 10th International Conference on the European Energy Market (EEM)

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The German response to the Fukushima nuclear power plant incident was possibly the most significant change of policy towards nuclear power outside Japan, leading to a sudden and very significant shift in the underlying power generation structure in Germany. This provides a very useful natural experiment on the impact of changing proportions of conventional fuel inputs to power production, helping us to see how changed proportions in future as a result of policy moves in favour of renewables are likely to impact. We find through exploration of a conventional demand-supply framework that despite the swift, significant change, the main impact was a relatively modest increase in prices occasioned by a shift of the supply curve; there were no appreciable quantity effects on the market, such as power outages, despite some views that the impacts would be significant.

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“…Their results pointed to no overall effects on the industry as a whole, but shareholders in firms, which were engaged in offshore operations in US waters, were significantly worse off. Ferstl et al [38] applied the event study methodology to evaluate the impact of the Japanese Fukusima-Daiichi nuclear disaster on the stock prices of international nuclear and alternative energy firms. They detected significant abnormal returns for Japanese, French, and German nuclear utility firms, but not for US-based companies.…”

Section: Introductionmentioning

confidence: 99%

Financial Perceptions on Oil Spill Disasters: Isolating Corporate Reputational Risk

2016

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Abstract:The aim of this paper is to isolate the corporate reputational risk faced by US oil and gas companies-as listed on the New York Stock Exchange (NYSE)-after recent oil spill disasters. For this purpose, we have conducted a standard short-horizon daily event study analysis aimed at the calibration of the financial perceptions caused by these environmental episodes between 2005 and 2011, and the drop effect on the market value of the firms analyzed. We not only find significant negative impact on the stock prices of the companies analyzed but also significant cumulative negative abnormal returns (CAR) around the accidental spillages, especially for the longest event windows. Corporate reputational risk is also identified and even measured by adjusting abnormal returns by a certain loss ratio. A new metric, CAR(Rep), is then proposed to disentangle operational losses and the reputational damage derived from such negative financial perceptions.

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The Effect of the Japan 2011 Disaster on Nuclear and Alternative Energy Stocks Worldwide - An Event Study

Abstract: This event study investigates the impact of the Japanese nuclear disaster in JEL-classification: G14, G12, G15

Cited by 12 publications

References 16 publications

Electricity Externalities, Siting, and the Energy Mix: A Survey

Electricity Externalities, Siting, and the Energy Mix: A Survey

German energy market fallout from the Japanese earthquake

Financial Perceptions on Oil Spill Disasters: Isolating Corporate Reputational Risk

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