EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/46548
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorGans, Willen_US
dc.contributor.authorHintermann, Beaten_US
dc.date.accessioned2011-06-08en_US
dc.date.accessioned2011-06-29T11:21:07Z-
dc.date.available2011-06-29T11:21:07Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/46548-
dc.description.abstractWhy do for-profit firms take voluntary steps to improve the environment? Brand appeal to green consumers or investors, the ability to influence or avoid regulation, or the experience gained for future regulation, have all been suggested as possible reasons. The empirical evidence is decidedly mixed. This paper uses 19 years of monthly stock price returns to examine the profitability of participation in the world's largest voluntary greenhouse gas mitigation program: the Chicago Climate Exchange. After controlling for systemic market risk as well as industry-specific shocks, we find no statistically significant impact of announcing to join CCX on excess returns. However, the market appeared to be sensitive to changes in abatement costs implied by CCX membership. Most strikingly, the progress of proposed greenhouse gas legislation (the Waxman-Markey bill) had a positive impact on excess returns for CCX member firms, suggesting that the most profitable incentive for firms to join CCX is to prepare for future regulation. Our results imply that relying on voluntary approaches alone to combat climate change may not be enough.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Energy and Climate Economics 3445en_US
dc.subject.jelQ53en_US
dc.subject.jelQ54en_US
dc.subject.ddc330en_US
dc.subject.keywordvoluntary actionen_US
dc.subject.keywordfirm performanceen_US
dc.subject.keywordclimate changeen_US
dc.subject.keywordpermit marketsen_US
dc.subject.stwSelbstverpflichtungen_US
dc.subject.stwKlimaschutzen_US
dc.subject.stwEmissionshandelen_US
dc.subject.stwMitgliedschaften_US
dc.subject.stwWirkungsanalyseen_US
dc.subject.stwKapitalertragen_US
dc.subject.stwBörsenkursen_US
dc.subject.stwUSAen_US
dc.titleMarket effects of voluntary climate action by firms: Evidence from the Chicago Climate Exchangeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn661601013en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
661601013.pdf520.73 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.