Johnston, Derek; Sefcik, Stephan; Soderstrom, Naomi - In: European Accounting Review 17 (2008) 4, pp. 747-764
This paper examines the valuation implications of greenhouse gas (GHG) emissions allowances. We posit that the value of a firm's bank of emission allowances has two components that are likely to be positively valued by the capital market: (1) an asset value component; and (2) a real option value...