IDEAS home Printed from https://ideas.repec.org/a/spr/envsyd/v45y2025i3d10.1007_s10669-025-10028-z.html
   My bibliography  Save this article

Asymmetric effects of carbon pricing on european sector stock returns: a short-term analysis

Author

Listed:
  • Rim Oueghlissi

    (University of Jendouba (FSJEG, Economics Department), ECSTRA (IHEC, University of Carthage))

  • Ahmed Derbali

    (ECSTRA (IHEC, University of Carthage))

Abstract

This study examines the response of European sector stock markets to fluctuations in carbon prices based on weekly data from October 30, 2009 to May 12, 2023, across fifteen European sectors. Using both linear and asymmetric models, the study examines whether the effects of the EUA prices on the stock market exhibit heterogeneity and asymmetry. The findings provide robust evidence of significant positive short-term correlations between carbon and stock prices across all sectors. They also suggest that changes in carbon pricing have a positive asymmetric short-term effect in stock prices of a certain sectors. These results carry substantial implications for policymakers and investors alike.

Suggested Citation

  • Rim Oueghlissi & Ahmed Derbali, 2025. "Asymmetric effects of carbon pricing on european sector stock returns: a short-term analysis," Environment Systems and Decisions, Springer, vol. 45(3), pages 1-13, September.
  • Handle: RePEc:spr:envsyd:v:45:y:2025:i:3:d:10.1007_s10669-025-10028-z
    DOI: 10.1007/s10669-025-10028-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10669-025-10028-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10669-025-10028-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Carbon Pricing; Stock market; Short-term analysis;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • F3 - International Economics - - International Finance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:envsyd:v:45:y:2025:i:3:d:10.1007_s10669-025-10028-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.