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Firm-specific impacts of CO2 prices on the stock market value of the Spanish power industry

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  • da Silva, Patricia Pereira
  • Moreno, Blanca
  • Figueiredo, Nuno Carvalho

Abstract

European Union carbon emissions allowances (EUA) price fluctuations can affect electricity companies' stock market values as these oscillations may change firms' profitability and thus investors' decisions. This outcome can differ not only contingent on the EU ETS Phase, but also on firms' generation mix. Moreover, stock markets may react differently to EUA increases in comparison to decreases, thus asymmetrically.

Suggested Citation

  • da Silva, Patricia Pereira & Moreno, Blanca & Figueiredo, Nuno Carvalho, 2016. "Firm-specific impacts of CO2 prices on the stock market value of the Spanish power industry," Energy Policy, Elsevier, vol. 94(C), pages 492-501.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:492-501
    DOI: 10.1016/j.enpol.2016.01.005
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    More about this item

    Keywords

    European Union Emission Trading System; Electricity sector; Energy prices; Vector error correction analysis;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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