Finance and fossil capital: A community divided?

Hudson, Mark; Bowness, Evan

doi:10.1016/j.exis.2020.11.016

Cited by 6 publications

(6 citation statements)

References 22 publications

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“…Hence, the study linked the divestment literature and production theory in the fossil fuel sector [46]. Complementing [6,41,47], this study empirically demonstrated that a change in investments influences the productivity and sales in the fossil fuel sector and that investors react to the change in sales because of the fear of stranded assets. Consequently, the results close a gap in the knowledge about investors' motivation to divest [47].…”

Section: Connection To Previous Research and Theorymentioning

confidence: 85%

Section: Discussionmentioning

confidence: 99%

“…The reason is the fear of stranded assets because future regulations and restrictions might cause a drop in the production and consumption of fossil fuels. Furthermore, the availability and holding values of the various capital flow factors in the form of assets, equities, and debt might decrease, leading to the further impairment of industrial productivity [41]. Finally, based on the bi-directional causality between the capital switching and stranded assets, the bi-directional linkage between the investors' moral concerns and financial concerns in the divestment processes can also be explained (see Figure 3).…”

Section: Discussionmentioning

confidence: 99%

“…Finally, based on the bi-directional causality between the capital switching and stranded assets, the bi-directional linkage between the investors' moral concerns and financial concerns in the divestment processes can also be explained (see Figure 3). Because of ethical considerations, socially responsible investors hope to limit the fossil fuel industry's business development and capital expansion by switching the capital flow [6,14,41]. Because of financial concerns, returns-driven investors hope to avoid risks related to stranded assets resulting from the low-carbon economy transition [29,37,42].…”

Section: Discussionmentioning

confidence: 99%

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Investors’ Moral and Financial Concerns—Ethical and Financial Divestment in the Fossil Fuel Industry

Zhang

Weber

2022

Sustainability

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It is discussed intensively whether divestment decease sales in the fossil fuel industry or whether investors divest from the fossil fuel industry because of stranded assets. Furthermore, it is unclear what the consequences of these activities are for the fossil fuel industry. Therefore, the study explores the direction of causality between cash flow factors, such as production factors and sources of financing and sales of the fossil fuel industry using lagged regression models and applying the Granger causality test. Our sample consists of fossil fuel companies from the Carbon Underground 200 list. Because R-squared values for both lagged financial factors and lagged sales were similar, we suggest a “bi-directional causality” between the financial flow factors and sales. We conclude that divestment (because of ethical concerns) can cause lower sales and that lower sales can cause divestment because of fear of the risk of stranded assets. Because a third factor usually causes bi-directional causations, we conclude that the need for the fossil fuel industry to reduce greenhouse gas emissions is the third factor that influences both the ethical and financial motivation of divestment. Consequently, the study contributes to theoretical approaches to divestment.

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Section: Connection To Previous Research and Theorymentioning

confidence: 85%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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Investors’ Moral and Financial Concerns—Ethical and Financial Divestment in the Fossil Fuel Industry

Zhang

Weber

2022

Sustainability

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“…Such fissures can be leveraged to move more moderate actors towards pro‐climate positions and marginalize reactionary forces. Fragmentation is also a vital opening for subaltern groups to press for more transformative and just climate action (Hudson & Bowness, 2021).…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Think tanks and climate obstruction: Atlas affiliates in Canada

Graham

2024

Canadian Review of Sociology

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This paper provides a longitudinal social network and content analysis of Canadian think tanks affiliated with the Atlas network, analyzing their efforts to obstruct climate action over the last two decades. Network analysis reveals extensive and deepening board interlocks and joint memberships between these think tanks and the fossil fuel industry, other policy‐planning organizations within and beyond Canada, and academic institutions. Consistent with and rooted in network ties, Atlas members produce a large and growing volume of climate‐related content, including content that denies the reality and impacts of climate change, promotes and defends the fossil fuel sector, and opposes climate policy and action. Atlas affiliates are argued to be at the core of a reactionary segment of Canada's elite policy‐planning network opposed to virtually all forms of climate action, while the frames and campaigns they deploy are seen as a force obstructing progress on climate change.

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