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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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    2. Fang, Sheng & Lu, Xinsheng & Li, Jianfeng & Qu, Ling, 2018. "Multifractal detrended cross-correlation analysis of carbon emission allowance and stock returns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 551-566.
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    11. Yang, Lu, 2022. "Idiosyncratic information spillover and connectedness network between the electricity and carbon markets in Europe," Journal of Commodity Markets, Elsevier, vol. 25(C).
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    14. Suleman, Muhammad Tahir & Rehman, Mobeen Ur & Sheikh, Umaid A. & Kang, Sang Hoon, 2023. "Dynamic time-frequency connectedness between European emissions trading system and sustainability markets," Energy Economics, Elsevier, vol. 123(C).
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    20. Luan, Limin & Liu, Pengfei & Mei, Yingdan, 2025. "The impact of pilot carbon market on firms' performance in China," Energy Economics, Elsevier, vol. 142(C).
    21. Svetlana V. Doroshenko & Anna D. Mingaleva, 2020. "Carbon Exchanges: European Experience in Developing the Mechanism of Emission Permit Trading," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 52-68, August.
    22. Zhang, Xiaoliang & Zheng, Xiaojia, 2024. "Does carbon emission trading policy induce financialization of non-financial firms? Evidence from China," Energy Economics, Elsevier, vol. 131(C).
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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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