In this section
@article{Bolton:2026:10.1111/jfir.12472,
author = {Bolton, P and Lam, A and Muuls, M},
doi = {10.1111/jfir.12472},
journal = {Journal of Financial Research},
pages = {631--665},
title = {Do carbon prices affect stock prices?},
url = {http://dx.doi.org/10.1111/jfir.12472},
volume = {49},
year = {2026}
}
TY - JOUR
AB - We explore how carbon pricing affects corporate financial performance during Phase 3 of the European Union Emissions Trading Scheme (EU ETS). We find that the relationship between carbon prices and stock prices depends critically on the proportion of verified emissions covered by freely allocated ETS allowances: For firms with a greater shortfall in emissions allowances (a greater permit coverage), an increase in daily carbon prices is associated with a decrease (increase) in contemporaneous stock prices. We provide additional evidence that firms with a significant permit shortfall reduce verified emissions in the EU, with no apparent carbon-leakage.
AU - Bolton,P
AU - Lam,A
AU - Muuls,M
DO - 10.1111/jfir.12472
EP - 665
PY - 2026///
SN - 0270-2592
SP - 631
TI - Do carbon prices affect stock prices?
T2 - Journal of Financial Research
UR - http://dx.doi.org/10.1111/jfir.12472
VL - 49
ER -