Arbeitspapier
Market effects of voluntary climate action by firms: Evidence from the Chicago Climate Exchange
Why 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.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 3445
- Klassifikation
-
Wirtschaft
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Climate; Natural Disasters and Their Management; Global Warming
- Thema
-
voluntary action
firm performance
climate change
permit markets
Selbstverpflichtung
Klimaschutz
Emissionshandel
Mitgliedschaft
Wirkungsanalyse
Kapitalertrag
Börsenkurs
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gans, Will
Hintermann, Beat
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gans, Will
- Hintermann, Beat
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2011
Ähnliche Objekte (12)
Voluntary corporate climate initiatives and regulatory threat
Climate Change Politics in Taiwan : Understanding Taiwan’s Voluntary Climate Action
Exploring information exchange in climate system and climate models
Climate change affectedness and innovation in German firms
Climate change affectedness and innovation in German firms
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
The market microstructure of the European Climate Exchange
Moral foundations and voluntary public good provision: The case of climate change
Are EU firms climate-ready? Micro evidence from EIBIS
NASA Earth Exchange Downscaled Climate Projections 30 Arcseconds CMIP6
Complexity and Learning Effects in Voluntary Climate Action: Evidence from a Field Experiment
Voluntary corporate climate initiatives and regulatory threat
Climate Change Politics in Taiwan : Understanding Taiwan’s Voluntary Climate Action
Exploring information exchange in climate system and climate models
Climate change affectedness and innovation in German firms
Climate change affectedness and innovation in German firms
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
The market microstructure of the European Climate Exchange
Moral foundations and voluntary public good provision: The case of climate change
Are EU firms climate-ready? Micro evidence from EIBIS
NASA Earth Exchange Downscaled Climate Projections 30 Arcseconds CMIP6
Complexity and Learning Effects in Voluntary Climate Action: Evidence from a Field Experiment
Voluntary corporate climate initiatives and regulatory threat
Climate Change Politics in Taiwan : Understanding Taiwan’s Voluntary Climate Action
Exploring information exchange in climate system and climate models
Climate change affectedness and innovation in German firms
Climate change affectedness and innovation in German firms
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
Voluntary Corporate Climate Initiatives and Regulatory Loom: Batten Down the Hatches
The market microstructure of the European Climate Exchange
Moral foundations and voluntary public good provision: The case of climate change
Are EU firms climate-ready? Micro evidence from EIBIS
NASA Earth Exchange Downscaled Climate Projections 30 Arcseconds CMIP6