What the study found
Public attention to climate issues can have a significant impact on the financial performance of fossil fuel companies. The study also found that climate regulatory uncertainty and the stringency of public environmental policies were not significant for the ex-post profitability of the companies in this sample, except when public attention intensified.
Why the authors say this matters
The authors conclude that the relationship between public policy and corporate profitability in the context of climate change depends on public attention to climate issues. The study suggests that attention may be an important condition in how policy-related factors relate to firm profitability.
What the researchers tested
The researchers used panel regressions, which are statistical models that analyze data across companies and over time, on a sample of 25 S&P 500 fossil fuel companies from 2004 to 2018. They examined the relationship between public policy, climate regulatory uncertainty, public environmental policy stringency, public attention to climate issues, and firm profitability.
What worked and what didn't
Public attention to climate issues was associated with a significant impact on financial performance. By contrast, climate regulatory uncertainty and the stringency of public environmental policies did not have a significant impact on ex-post profitability in the sample, except when public attention to climate issues intensified.
What to keep in mind
The abstract describes results for 25 S&P 500 fossil fuel companies over 2004 to 2018, so the findings are limited to that sample and period. Other limitations are not described in the available summary.
Key points
- The study found that public attention to climate issues can significantly affect fossil fuel companies' financial performance.
- Climate regulatory uncertainty was not significant for ex-post profitability in the sample.
- The stringency of public environmental policies was also not significant in the sample, except when public attention intensified.
- The analysis used panel regressions on 25 S&P 500 fossil fuel companies from 2004 to 2018.
Disclosure
- Research title:
- Public attention alters fossil fuel company profitability
- Authors:
- Marie Cellou
- Institutions:
- Centre de Recherche en Économie et Management, Centre National de la Recherche Scientifique, Université de Rennes
- Publication date:
- 2026-02-17
- OpenAlex record:
- View
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