Brown Capital (Re)Allocation
Year: 2024
Type: article
Abstract: We study who owns coal power plants - the largest single source of carbon emissions - in Europe. A sharp increase in private firms' ownership was met by a large decline in public equity ownership. This decline was not driven by public equity investors selling plants, but by their scaling down of plants quickly. State investors played a crucial role, selling to private firms and slowly scaling down their plants. We calibrate a model in which asset owners vary in how they value externalities. Nationalization by state investors that value social factors (jobs, "energy security") can hinder "green finance" in decreasing emissions.
Source: Stanford Digital Repository
DOI: 10.25740/cw219zq3688
Authors: Darmouni, Olivier, Zhang, Yuqi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6889572684
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