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 language | English |
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Publication status | Accepted/In press - 2024 |
Event | ASSA 2025 Annual Meeting - San Francisco, United States Duration: 3 Jan 2025 → 5 Jan 2025 https://www.aeaweb.org/conference/2025 |
Conference
Conference | ASSA 2025 Annual Meeting |
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Country/Territory | United States |
City | San Francisco |
Period | 3/01/25 → 5/01/25 |
Internet address |