Profiting from regulation: an event study of the EU carbon market Bushnell, James Chong, Howard Mansur, Erin
dc.contributor.department Economics 2018-02-17T17:44:40.000 2020-06-30T02:11:54Z 2020-06-30T02:11:54Z 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>
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dc.identifier archive/
dc.identifier.articleid 1124
dc.identifier.contextkey 8689636
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/125
dc.source.bitstream archive/|||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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