Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies
In this paper we have assessed the impact of the European Union’s Emissions Trading Scheme (EU ETS) on the level of the carbon premium. The aim of the study is to determine whether there is a stable carbon premium in energy-intensive sectors. Unlike other studies, our research sample included not on...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-03-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/7/1855 |
| _version_ | 1797539872356958208 |
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| author | Pawel Witkowski Adam Adamczyk Slawomir Franek |
| author_facet | Pawel Witkowski Adam Adamczyk Slawomir Franek |
| author_sort | Pawel Witkowski |
| collection | DOAJ |
| description | In this paper we have assessed the impact of the European Union’s Emissions Trading Scheme (EU ETS) on the level of the carbon premium. The aim of the study is to determine whether there is a stable carbon premium in energy-intensive sectors. Unlike other studies, our research sample included not only companies in the energy sector, but also entities classified as energy-intensive. In the research, we used our own criterion for allocating companies to a clean and dirty portfolio, which made it possible to make the estimation of the carbon premium more resistant to changes in the rules for allocation of emission allowances. We detected a positive, statistically significant carbon premium in the years 2003–2012 and a negative one in the years 2013–2015, but we did not detect a statistically significant carbon premium in the period 2016–2019. This means that there are no grounds for concluding that there is a stable, positive carbon premium for energy-intensive companies subject to the EU ETS over time. We have also noticed that a significant problem in studying the impact of the EU ETS on the carbon premium is the use of static portfolios of clean and dirty companies |
| first_indexed | 2024-03-10T12:52:00Z |
| format | Article |
| id | doaj.art-1cf5213eb325403ba082a15bbeab726a |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T12:52:00Z |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-1cf5213eb325403ba082a15bbeab726a2023-11-21T13:00:11ZengMDPI AGEnergies1996-10732021-03-01147185510.3390/en14071855Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive CompaniesPawel Witkowski0Adam Adamczyk1Slawomir Franek2Institute of Economics and Finance, University of Szczecin, 71-101 Szczecin, PolandInstitute of Economics and Finance, University of Szczecin, 71-101 Szczecin, PolandInstitute of Economics and Finance, University of Szczecin, 71-101 Szczecin, PolandIn this paper we have assessed the impact of the European Union’s Emissions Trading Scheme (EU ETS) on the level of the carbon premium. The aim of the study is to determine whether there is a stable carbon premium in energy-intensive sectors. Unlike other studies, our research sample included not only companies in the energy sector, but also entities classified as energy-intensive. In the research, we used our own criterion for allocating companies to a clean and dirty portfolio, which made it possible to make the estimation of the carbon premium more resistant to changes in the rules for allocation of emission allowances. We detected a positive, statistically significant carbon premium in the years 2003–2012 and a negative one in the years 2013–2015, but we did not detect a statistically significant carbon premium in the period 2016–2019. This means that there are no grounds for concluding that there is a stable, positive carbon premium for energy-intensive companies subject to the EU ETS over time. We have also noticed that a significant problem in studying the impact of the EU ETS on the carbon premium is the use of static portfolios of clean and dirty companieshttps://www.mdpi.com/1996-1073/14/7/1855carbon riskclimate changeEuropean Union Emissions Trading Schemestock returns |
| spellingShingle | Pawel Witkowski Adam Adamczyk Slawomir Franek Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies Energies carbon risk climate change European Union Emissions Trading Scheme stock returns |
| title | Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies |
| title_full | Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies |
| title_fullStr | Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies |
| title_full_unstemmed | Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies |
| title_short | Does Carbon Risk Matter? Evidence of Carbon Premium in EU Energy-Intensive Companies |
| title_sort | does carbon risk matter evidence of carbon premium in eu energy intensive companies |
| topic | carbon risk climate change European Union Emissions Trading Scheme stock returns |
| url | https://www.mdpi.com/1996-1073/14/7/1855 |
| work_keys_str_mv | AT pawelwitkowski doescarbonriskmatterevidenceofcarbonpremiumineuenergyintensivecompanies AT adamadamczyk doescarbonriskmatterevidenceofcarbonpremiumineuenergyintensivecompanies AT slawomirfranek doescarbonriskmatterevidenceofcarbonpremiumineuenergyintensivecompanies |