Profiting from regulation: an event study of the EU carbon market

dc.contributor.author Bushnell, James
dc.contributor.author Chong, Howard
dc.contributor.author Mansur, Erin
dc.contributor.department Economics
dc.date 2018-02-17T17:44:40.000
dc.date.accessioned 2020-06-30T02:11:54Z
dc.date.available 2020-06-30T02:11:54Z
dc.date.issued 2011-04-06
dc.description.abstract <p>We investigate the effect of cap-and-trade regulation of CO2 on firm profits by performing an event study of a CO2 price crash in the EU market. We examine returns for 90 stocks from carbon intensive industries and 600 stocks in the broad EUROSTOXX index. Firms in carbon intensive, or electricity intensive industries, but not involved in international trade were most hurt by the event. This implies investors were focused on product price impacts, rather than compliance costs. We find evidence that firms' net allowance positions also strongly influenced the share price response to the decline in allowance prices.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/125/
dc.identifier.articleid 1124
dc.identifier.contextkey 8689636
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/125
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22340
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/125/p12737_2011_04_06.pdf|||Fri Jan 14 19:23:02 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords emissions markets
dc.subject.keywords incidence of taxation
dc.subject.keywords event study
dc.title Profiting from regulation: an event study of the EU carbon market
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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