How Policy Changes Affect Shareholder Wealth: The Case Of The Fukushima Daiichi Nuclear Disaster
Source: Institute for the Study of Labor
This paper analyzes how policy changes affect shareholder wealth in the context of environmental regulation. The authors exploit the unique and unexpected German reaction to the Fukushima Daiichi nuclear disaster, which involved the immediate shutdown of almost half of Germany's nuclear reactors while safety checks were carried out, and a three-month moratorium on extending the lives of others. Using the event study methodology, their findings indicate a wealth transfer from nuclear energy companies to renewable energies companies in Germany.