Do efforts on energy saving enhance firm values? Evidence from China's stock market

Dezhu Ye, Shasha Liu and Dongmin Kong

Energy Economics, 2013, vol. 40, issue C, 360-369

Abstract: This paper studies the impact of energy-saving efforts on firm value, using the carbon emission rights trading scheme (CERTS) of China as an exogenous shock. The results showed that the CERTS increases the market value of energy-related firms; moreover, the energy-saving efforts of firms further influence their market value and investor reaction. Energy-related firms improve their market value and gain benefits by strengthening their energy-saving activities. This paper offers an important policy implication that the Government should enact appropriate policies to improve the energy-saving activities of firms, especially in the energy industry.

Keywords: Energy saving; Firm values; Event study; Emerging market (search for similar items in EconPapers)
JEL-codes: G14 O13 Q48 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:40:y:2013:i:c:p:360-369

DOI: 10.1016/j.eneco.2013.07.017

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