Profiting from Regulation: Evidence from the European Carbon Market
Loading...
No Access Until
Permanent Link(s)
Collections
Other Titles
Author(s)
Abstract
We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2 allowance price dropped 50 percent, equating to a € 28 billion reduction in the value of aggregate annual allowances. We examine daily returns for 552 stocks from the EUROSTOXX index. Despite reductions in environmental costs, we find that stock prices fell for firms in both carbon- and electricity-intensive industries, particularly for firms selling primarily within the EU. Our results imply that investors focus on product price impacts, rather than just compliance costs and the nominal value of pollution permits.
Journal / Series
Volume & Issue
Description
Sponsorship
Date Issued
2013-11-01
Publisher
Keywords
emissions trading; regulation; effects; stock prices; carbon offsets; statistical analysis
Location
Effective Date
Expiration Date
Sector
Employer
Union
Union Local
NAICS
Number of Workers
Committee Chair
Committee Co-Chair
Committee Member
Degree Discipline
Degree Name
Degree Level
Related Version
Related DOI
Related To
Related Part
Based on Related Item
Has Other Format(s)
Part of Related Item
Related To
Related Publication(s)
Link(s) to Related Publication(s)
References
Link(s) to Reference(s)
Previously Published As
Government Document
ISBN
ISMN
ISSN
Other Identifiers
Rights
Required Publisher Statement: © American Economic Association. Reprinted with permission. All rights reserved.
Rights URI
Types
article