The EU ETS and corporate environmental abatement

Does China’s Emission Trading Scheme Affect Corporate Financial Performance: Evidence from a Quasi-Natural Experiment

“…Our results show that increases in the carbon emissions trading price and price volatility reduced profitability and market value for the firms. These results are consistent with findings of prior studies that environmental regulations raise production costs and stimulate expenditure on research and development (R&D), leading to lower accounting measures of returns (Brouwers et al, 2017).…”

Climate Policy Leadership in an Interconnected World

“…There is some evidence of this occurring in the unique currently functioning BCA on electricity in California (Prag, 2020 [12]). Second, the costs of verification and certification could be disproportionally high for small producers in developing countries where assessment and certification infrastructure is deficient (OECD, 2005 [60]; Moïsé and Steenblik, 2011 [61]), adversely affecting these producers (Brenton, Edwards-Jones and Jensen, 2009 [62]; Bowlig and Gibbon, 2009[63]; Edwards-Jones et al, 2009 [64]). Finally, experience has shown that certification is subject to foot-dragging by importing countries in a way that makes the process expensive for exporters, or collusion by importers (looking after their supply chains, as has been the case in the palm-oil industry) to green-wash the results (Lange and Bundy, 2018 [65]; Cazzolla Gatti et al, 2019 [66]).…”