The aim of this paper is to find out whether shareholders consider the EU Emission Trading Scheme (EU ETS) as value relevant for polluting firms. An analysis is conducted of changes in share prices, caused by the first publication of annual compliance data. In April 2006, it turned out that...

Carbon Capture and Storage (CCS) is a new combination of technologies that may become available to firms that emit CO2 under the European Union’s emissions trading scheme (EU ETS). An example is an electricity producer that captures its CO2 and transports it to a depleted gas field where it is...

The greenhouse gas emissions trading scheme in the European Union primarily uses grandfathering until 2012, which means that polluters get emission rights free of charge based on their historical emissions. Energy consumers accuse energy producers of making windfall profits by incorporating the...

This paper aims to identify what determines the allowance transactions of energy firms on the European carbon market (EU ETS). We develop measures of their 'autarky' regarding the carbon market, their allowance hedging, and the allowance holdings which ensure optimal EU ETS compliance. Although...

According to the ‘make-or-buy decision', transactions take place within firm boundaries when transaction costs are lower vis-à-vis the market. Analyzing EU Emissions Trading Scheme (EU ETS) transactions, this paper examines whether firms follow this make-or-buy principle by behaving...