Do Carbon Markets Undermine Private Climate Initiatives?

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Ian Appel

Paper Title: Do Carbon Markets Undermine Private Climate Initiatives?
 
Speaker:  Ian Appel, Darden School of Business, University of Virginia
 
Time and Date: 12-1 pm, Wednesday 4th September 2024 (AEST)
 
Location: CB08.08.002, Level 8, Building 8, University of Technology Sydney, Australia (Map of campus)

Abstract: We study commitments to reduce emissions by firms subject to the European Union Emission Trading System (EU ETS), the world’s largest cap-and-trade program. Commitments are associated with a drop in the number of carbon allowances surrendered, consistent with firms taking actions to reduce their emissions. However, firms subsequently increase their sales of allowances on the secondary market, transferring the right to pollute to others and potentially leaving aggregate emissions unchanged. Despite this, firms benefit from commitments via higher ESG scores. Our results highlight the need for researchers, practitioners, and policymakers to consider the interaction between carbon markets and private climate initiatives.

Download paper

You can also keep up-to-date on information about our seminar series by following our LinkedIn page or checking out our seminar webpage.

Co-ordinator: Kenny Phua

Enquiries: Cassie Sloane

Back to Finance seminars
Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.