Climate change is among the most contentious issues of the 21st century. Without a shared understanding of its consequences, securing support for climate policies remains difficult. We hypothesize that exposure to tailored opportunities to trade in financial markets, particularly in energy stocks that are central to the green transition, can induce experiential learning and greater policy support for climate mitigation efforts. We test our hypothesis using a randomized controlled trial. We find that randomly assigned exposure to trade in green and brown energy stocks leads treated individuals to express stronger agreement with the view that climate change is driven by human activity, that it will affect quality of life in the U.S., and that the U.S. government and U.S. companies should do more to reduce emissions. Treated respondents also exhibit a greater tendency to donate to climate causes and factor climate change into personal decisions regarding where to live, work, and invest. These attitudinal changes are particularly pronounced among individuals identifying as Republicans, who are more likely to be skeptical of climate change at baseline. In line with our primary theoretical argument, our findings suggest exposure to financial markets incentivizes learning, which in turn shapes climate-related beliefs, preferences, and behaviors.

ABOUT THE SPEAKER

Saumitra Jha is an associate professor of political economy at Stanford’s Graduate School of Business, and a professor of economics and of political science by courtesy. He is also a senior fellow at the Center for Democracy, Development and Rule of Law, in the Freeman-Spogli Institute, and at the Stanford Institute for Economic Policy Research.

Prior to joining the GSB, Saumitra was an Academy Scholar at Harvard University. He has been a fellow of the Niehaus Center for Globalization and Governance and the Center for the Study of Democratic Politics at Princeton University. He received the Michael Wallerstein Award for best published article in political economy from the American Political Science Association for his research on ethnic tolerance. Saumitra has consulted on economic and political risk issues for the United Nations/ WTO and the World Bank. He holds a BA from Williams College, master’s degrees in economics and mathematics from the University of Cambridge, and a PhD in economics from Stanford University.

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