Profiting from regulation: an event study of the EU carbon market
James B. Bushnell,
Howard G. Chong and
Erin Mansur
ISU General Staff Papers from Iowa State University, Department of Economics
Abstract:
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.
Date: 2011-04-06
References: Add references at CitEc
Citations:
Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... 6479dd06e265/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden
Related works:
Working Paper: Profiting from Regulation: An Event Study of the EU Carbon Market (2010) 
Working Paper: Profiting from Regulation: An Event Study of the EU Carbon Market (2009) 
Working Paper: Profiting from Regulation: An Event Study of the EU Carbon Market (2009) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:201104060700001124
Access Statistics for this paper
More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().