Difference in Stock Prices Before and After The Inaugurations of the Indonesia Carbon Exchange

Umi Marwati () and Arif Darmawan ()
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Umi Marwati: Politeknik Negeri Batam, Management and Business
Arif Darmawan: Politeknik Negeri Batam, Management and Business

A chapter in Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025), 2026, pp 3-20 from Springer

Abstract: Abstract This study looks at how the market reacted to the start of the Indonesia Carbon Exchange (ICX), especially in the energy sector of Indonesia. To measure these reactions, three things were checked: Average Abnormal Return (AAR), Average Trading Volume Activity (ATVA), and Average Security Return Variability (ASRV). The study used a quantitative method, looking at 64 companies over a 10-day period before and after the ICX began. The results found that there was a big difference in AAR before and after the ICX started, with a very low significance value of 0. 000. However, there was no big change in ATVA or ASRV. This suggests that the market reacts more to changes in returns than to trading volume or volatility when it comes to environmental policies.

Keywords: Indonesian carbon exchange; average abnormal return; average trading volume; average security return variability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-990-2_2

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DOI: 10.2991/978-94-6463-990-2_2

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