The shock is scaled to the coverage in newspaper articles as observed during the twenty-first session of the Conference of the Parties (COP21) meeting in Paris in December 2015, and the number of international oil drilling facilities is used as a proxy for oil investment.
Panels B and C: impulse responses and forecast error variance decomposition are obtained from a monthly oil BVAR model in which a transition risk shock is identified in addition to oil demand, oil specific demand and oil supply shocks using sign and narrative restrictions.