Discussion paper

DP18446 The Green Energy Transition and the 2023 Banking Crisis

This study examines the stock price reactions of environmentally responsible stocks during the onset of the 2023 banking crisis, triggered by the collapse of Silicon Valley Bank (SVB). Our findings indicate that stocks poised to benefit from the shift to a low-carbon economy underperformed during the 2023 crisis. This suggests that investors anticipate a slowdown in climate tech development due to distress in the banking sector. Our results underscore the significance of considering not only the influence of the climate crisis on financial stability, but also the pivotal role that financial stability plays in ensuring a successful energy transition.


D'Ercole, F and A Wagner (2023), ‘DP18446 The Green Energy Transition and the 2023 Banking Crisis‘, CEPR Discussion Paper No. 18446. CEPR Press, Paris & London. https://cepr.org/publications/dp18446