| ID | 132685 |
| Title Proper | Does EU emissions trading bite |
| Other Title Information | an event study |
| Language | ENG |
| Author | Jong, Thijs ; Couwenberg, Oscar ; Woerdman, Edwin |
| Publication | 2014. |
| Summary / Abstract (Note) | The aim of this paper is to examine whether shareholders consider the EU Emissions Trading Scheme (EU ETS) as value-relevant for the participating firms. An analysis is conducted of the share prices changes as caused by the first publication of compliance data in April, 2006, which disclosed an over-allocation of emission allowances. Through an event study, it is shown that share prices actually increased as a result of the allowance price drop when firms have a lower carbon-intensity of production and larger allowance holdings. There was no significant value impact from firms× allowance trade activity or from the pass-through of carbon-related production costs (carbon leakage). The conclusion is that the EU ETS does 'bite'. The main impact on the share prices of firms arises from their carbon-intensity of production. The EU ETS is thus valued as a restriction on pollution. |
| `In' analytical Note | Energy Policy Vol.69, No. ; Jun.2014: p.510-519 |
| Journal Source | Energy Policy Vol.69, No. ; Jun.2014: p.510-519 |
| Key Words | EU ETS ; Allowance transactions ; Carbon trading ; Over-allocation ; Event study ; European Union - EU ; EU Emissions Trading Scheme - EU - ETS ; Carbon-Intensity |