Mitigating Climate Change Through Investor Activism

Over the past decade, there has been a rise in investor activism that demands climate action from private companies. To justify investor activism, there must be quantitative evidence of its efficacy in mitigating climate change, showing that it is a proper response to the current climate crisis. 

A new model must be developed to address the question of: how much would companies divest from fossil fuels without investor activism? The answer is not zero—companies already have an incentive to adopt green technologies that yield long-term payoffs. Investor activism serves as a catalyst, the impact of which this study aims to measure.
Further, the success of solar fuel technology is interconnected with other key components in a green energy ecosystem including a hydrogen economy, carbon capture, energy equity, and electricity markets. This study also investigates the consequences of successful deployment of solar fuel technology on each component. 

Joseph Huang

PhD Economics, SAS
Joseph Huang is a PhD student in economics in the School of Arts and Sciences.