Bushnell, James B.; Chong, Howard; Mansur, Erin T. - In: American Economic Journal: Economic Policy 5 (2013) 4, pp. 78-106
We investigate how cap-and-trade regulation affects profits. In late April 2006, the EU CO2 allowance price dropped 50 percent, equating to a ?28 billion reduction in the value of aggregate annual allowances. We examine daily returns for 552 stocks from the EUROSTOXX index. Despite reductions in...