This study reveals the inconsistencies between the negative externalities of carbon emissions and the recognition condition of accounting statements. Hence, the study identifies that heavily polluting enterprises in China have severe off-balance sheet carbon reduction risks before implementing...

Using high-frequency data from the European Climate Exchange (ECX), we examine the determinants of price impact of €21 billion-worth of block trades during 2008-2011 in the European carbon market. We find that wider bid-ask spreads and volatility are characterised by smaller price impact....