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The Impact of the Opening of China’s National Carbon Emissions Trading Market on the Stock Performance of Listed Companies in the Power Industry

Zhu, Yibo - 2022

The opening of China's carbon market on July 16, 2021 is a major event in China's green finance sector, and the purpose … of this thesis is to examine the impact of this event on the stock performance of listed companies in China's power … negative impact on the stock returns of companies. After the establishment of China's carbon trading market, the carbon premium …

Persistent link: https://www.econbiz.de/10014264682

Carbon Emissions and Stock Returns : Evidence from the EU Emissions Trading Scheme

Oestreich, Andreas Marcel - 2015

This paper provides an empirical investigation of the effect of the European Union's Emissions Trading Scheme on German stock returns. We find that, during the first few years of the scheme, firms that received free carbon emission allowances on average significantly outperformed firms that did...

Persistent link: https://www.econbiz.de/10013036163

Are Carbon Emissions Associated with Stock Returns?

Aswani, Jitendra; Raghunandan, Aneesh; Rajgopal, Shivaram - 2021

An influential emerging literature, led by Bolton and Kacperczyk (2021a), documents strong correlations between unscaled raw emissions and both stock returns and operating performance. We re-examine that data, using a sample of 2,729 U.S. firms from 2005-2019, and conclude that the associations...

Persistent link: https://www.econbiz.de/10013234176

Emission Permits and the Announcement of Realized Emissions : Price Impact, Trading Volume, and Volatilities

Hitzemann, Steffen - 2016

This paper investigates the impact of the yearly announcement of realized emissions on the European carbon permit market. We find that this event generally leads to significant absolute abnormal returns on the event day, which are accompanied by increased trading volumes and high intraday...

Persistent link: https://www.econbiz.de/10013007371

Asset Pricing and the Carbon Beta of Externalities

Edenhofer, Ottmar; Lessmann, Kai; Tahri, Ibrahim - 2021

Climate policy needs to set incentives for actors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives...

Persistent link: https://www.econbiz.de/10013214337

Asset diversification versus climate action

Hambel, Christoph; Kraft, Holger; Ploeg, Frederick van der - 2020

Asset pricing and climate policy are analyzed in a global economy where consumption goods are produced by both a green and a carbon-intensive sector. We allow for endogenous growth and three types of damages from global warming. It is shown that, initially, the desire to diversify assets...

Persistent link: https://www.econbiz.de/10012258563

The scenario-based equity price impact induced by greenhouse gas emissions

Weth, Mark A.; Baltzer, Markus; Bertram, Christoph; … - 2024

This paper proposes a forward-looking metric of transition risk that relates financial performance and incremental carbon costs at the firm level. To this end, we use a consistent dividend discount framework augmented with emission costs of firms and climate scenario projections from four...

Persistent link: https://www.econbiz.de/10015048429

Do Carbon Prices Affect Stock Prices?

Bolton, Patrick; Lam, Adrian; Muûls, Mirabelle - 2023

We explore how carbon pricing affects corporate financial performance. Our setting exploits time series changes in European carbon allowance prices and cross-sectional heterogeneity in carbon emissions during Phase 3 of the European Union Emissions Trading Scheme (EU ETS). We find that the...

Persistent link: https://www.econbiz.de/10014254399

Carbon Risk and Equity Prices

Enders, Arthur; Lontzek, Thomas; Schmedders, Karl; … - 2023

We study the effects of carbon risk on equity prices in the US and Europe using disclosed carbon intensity data, and find a negative effect on the cross section of returns and a negative carbon premium. Examining fund flows, we find that institutional investors have an aversion to...

Persistent link: https://www.econbiz.de/10014344345

Does economic policy uncertainty outperform macroeconomic factor and financial market uncertainty in forecasting carbon emission price volatility? : evidence from China

Lu, Hengzhen; Gao, Qiujin; Li, Matthew C. - In: Applied economics 55 (2023) 54, pp. 6427-6443

Persistent link: https://www.econbiz.de/10014381870