The impact of climate policies on financial markets: Evidence from the EU Carbon Border Adjustment Mechanism

Mengjie Shi, Yupu Zhang, Christoph Meinerding

Research output: Contribution to conferencePaper

Abstract / Description of output

The introduction of the EU Carbon Border Adjustment Mechanism (CBAM) has triggered statistically significant negative stock market responses for firms within the EU. Comparing EU customers that have non-EU suppliers in CBAM-affected industries with their nontreated peers in the control group, we find an extra cumulative abnormal return of up to -1.3 percentage points over our main five-day event window around December 13, 2022. Both the suppliers' locations and their industries are key determinants of the treatment effects. We also document sizeable treatment effects for supplier firms and for other event dates.
Original languageEnglish
Publication statusAccepted/In press - 2024
EventASSA 2025 Annual Meeting - San Francisco, United States
Duration: 3 Jan 20255 Jan 2025
https://www.aeaweb.org/conference/2025

Conference

ConferenceASSA 2025 Annual Meeting
Country/TerritoryUnited States
CitySan Francisco
Period3/01/255/01/25
Internet address

Fingerprint

Dive into the research topics of 'The impact of climate policies on financial markets: Evidence from the EU Carbon Border Adjustment Mechanism'. Together they form a unique fingerprint.

Cite this