scholarly journals The Effects of Environmental Regulation on the Singapore Stock Market

2019 ◽  
Vol 12 (4) ◽  
pp. 175
Author(s):  
Pham ◽  
Nguyen ◽  
Ramiah ◽  
Mudalige ◽  
Moosa
Keyword(s):  
Stock Market ◽  
Environmental Regulation ◽  
Alternative Energy ◽  
Carbon Tax ◽  
Environmental Regulations ◽  
Five Factor Model ◽  
Abnormal Returns ◽  
Electricity Sector ◽  
The Impact ◽  
Non Parametric

This study examines the impact of environmental regulation on the Singapore stock market using the event study methodology. Several asset pricing models are used to estimate sectoral abnormal returns. Additionally, we estimate the change in systematic risk after the introduction of the carbon tax and related regulation. We conduct various robustness tests, including the Corrado non-parametric ranking test, the Chesney non-parametric conditional distribution approach, a representation of market integration, and Fama–French five-factor model. We find evidence showing that the environmental regulations tend to achieve their desired effects in Singapore in which several big polluters (including industrial metals and mining, forestry and papers, and electrical equipment and services) were negatively affected by the announcements of environmental regulations and carbon tax. In addition, our results indicate that the electricity sector, one of the biggest polluters, was negatively affected by the announcement of environmental regulations and carbon tax. We also find that environmental regulations seem to boost the performance of environmentally-friendly sectors whereby we find the alternative energy industry (focusing on new renewable energy technologies) experienced a sizeable positive reaction following the announcements of these regulations.

scholarly journals Comparative effectiveness of environmental regulation instruments: Case of the Moroccan electricity mix

AIMS Energy ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 1097-1112
Author(s):  
Soufiyan Bahetta ◽  
◽  
Nabil Dahhou ◽  
Rachid Hasnaoui ◽  
◽  
...  
Keyword(s):  
Renewable Energy ◽  
Environmental Regulation ◽  
Environmental Sustainability ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Electricity Sector ◽  
Energy Technologies ◽  
Emission Standards ◽  
Electricity Mix ◽  
The Impact

<abstract> <p>Fossil fuels dominate the electricity mix of Morocco, the country is placing renewable energy at the heart of its energy strategy, to improve the security of supply and ensure environmental sustainability. However, the penetration of renewable energy technologies (RET) in the Moroccan electricity mix remains low due to an excess of investment in conventional energy technologies. This study first explores the characteristics of the Moroccan electricity mix before studying the dynamic effects of environmental regulatory instruments, in particular the carbon tax and the emission standards. To do so, we analyzed scenarios using a bottom-up linear and dynamic optimization model « OSeMOSYS» . We will therefore assess the impact of the carbon tax and the emission standards on RET adoption in the Moroccan electricity mix, over a period from 2015 to 2040. Our results suggest that environmental regulation in the electricity sector will lead to a large diversification of the Moroccan electricity mix with a large penetration of RET thus reducing the overall production of conventional energy technologies. Therefore, it follows that the carbon tax encourages the adoption of RET in the Moroccan electricity mix with significant reductions on fuel costs and operating &amp; maintenance (O &amp; M) costs of conventional energy technologies compared to emission standards.</p> </abstract>

scholarly journals The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

2021 ◽  
Vol 18 (4) ◽  
pp. 1398
Author(s):  
Kuo-Jung Lee ◽  
Su-Lien Lu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Recovery Phase ◽  
Socially Responsible ◽  
Cumulative Impact ◽  
Study Approach ◽  
Price Performance ◽  
The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

Testing Market Reaction On Stock Market Delisting In Russia

2021 ◽  
Vol 15 (3) ◽  
pp. 14-27
Author(s):  
Елена Моисеевна Рогова ◽  
Maria Belousova
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Global Market ◽  
Public Companies ◽  
Market Participants ◽  
Study Methodology ◽  
Available Information ◽  
The Impact

This paper expands the available information on the effects of delisting in Russia, and represents a rare empirical analysis of the impact of external events on securities prices in this major global market. We seek to evaluate how stock prices of competing companies fluctuate around the dates of stock market delisting announcements and completion. We analyse stock prices as correlated with company delisting events from 2004 to 2019 on 552 companies on the Russian MOEX Exchange. The event study methodology is used to evaluate the abnormal returns of rival companies close to relevant delisting dates. These data were checked for statistical significance using the standardised Patell residual test. The results indicate a significant competitive effect on stock prices both on the dates of delisting announcement and on completion, with more significant returns close to announcement dates. These effects were found to influence the prospects not just of individual groups of companies, but of all market participants. We may conclude from our results that delisting is not an event limited in effect to only one company, but impacts the industry as a whole, temporarily changing its value. As such, it will interest both shareholders and managers of public companies, and any participants of industries in which delisting occurs.

Carbon tax, corporate carbon profile and financial return

2014 ◽  
Vol 26 (3) ◽  
pp. 351-373 ◽  
Author(s):  
Le Luo ◽  
Qingliang Tang
Keyword(s):  
Carbon Tax ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Economic Restructuring ◽  
Shareholder Wealth ◽  
Financial Return ◽  
Content Type ◽  
Carbon Policy ◽  
Carbon Profile ◽  
The Impact

Purpose – This paper aims to investigate the impact of the proposed carbon tax on the financial market return of Australian firms. It also considers the differential tax effect on individual firms with different carbon profiles, including factors such as emissions costs, carbon disclosure and climate-change policies. Design/methodology/approach – Utilising the event-study method, the authors examine the market reaction to seven key carbon legislative information events that occurred from February 2011 to November 2011. The sample includes 48 different firms whose emissions-related data are available from Carbon Disclosure Project reports; thus, 336 firm-event observations are used for the cross-sectional analysis. Findings – The paper documents evidence that the proposed tax has an overall negative impact on shareholder wealth as measured by abnormal returns. The negative impact varies across sectors, with the most significant effect found in the materials, industrial and financial sectors. It was also found that a firm’s direct carbon exposure (as measured by Scope 1 emissions) is significantly associated with abnormal returns, whereas the indirect exposure (as measured by Scope 2 emissions) is not, because Scope 2 emissions are not covered by the tax. In addition, the findings suggest that the information content of the events is more notable during the early stages of the development of the carbon tax. Research limitations/implications – The sample is restricted to the largest firms with relevant carbon profile information. Thus, caution should be exercised when generalising the inferences. Practical implications – The introduction of the carbon tax was largely unexpected and most firms were unprepared for it; thus, their carbon policy appears inadequate and does not impress investors. An understanding of how the carbon tax affects shareholder value and welfare will encourage management to take proactive actions to mitigate the compliance costs of carbon legislation. Originality/value – The enactment of the Australian carbon tax perhaps represents one of the biggest social and economic restructuring events in the country’s history. Our results offer initial insight into its impact and suggest that investors would penalise firms with heavy direct operational emissions. In addition, Australian corporate carbon policy seems inadequate, so does not reverse the negative effect of the tax on the value of a firm.

scholarly journals Research on the Impact of Environmental Regulation and Technology Innovation on the Quality of Economic Growth

2021 ◽  
Author(s):  
Qingyang Wu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Environmental Regulation ◽  
Technological Innovation ◽  
Environmental Regulations ◽  
Threshold Model ◽  
Fixed Effect Model ◽  
Paper Test ◽  
The Impact

Abstract：This paper uses the balanced panel data from 29 provinces (autonomous regions and municipalities) in China for a total of 17 years from 2000 to 2016 as a research sample, and establishes an empirical model to examine the impact of environmental regulations and technological innovation on the quality of economic growth. Then this paper test technological innovation as a threshold variable, in which play a regulatory role. Taking the provincial balanced panel data as a research sample, a fixed effect model, a system GMM model, and a panel threshold model were established for empirical testing and the robustness test. Based on the empirical results, this article draws the following conclusions: from a national perspective, environmental regulations and technological innovation can significantly promote the quality of economic growth; from a regional perspective, there are regional differences in impact effects. Under the constraints of environmental regulations, the promotion effect of technological innovation on the quality of economic growth will be reduced; the impact of environmental regulation on the quality of economic growth will have a "threshold effect", and environmental regulation can significantly promote the quality of economic growth only after crossing the threshold and the threshold of technological innovation.

scholarly journals How Do Different Types of Environmental Regulations Affect Green Innovation Efficiency?

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Hui Li ◽  
Chuandang Zhao ◽  
Xiaoying Tang ◽  
Jiawei Cheng ◽  
Guanyang Lu ◽  
...  
Keyword(s):  
Environmental Regulation ◽  
Environmental Regulations ◽  
Evolutionary Relationship ◽  
Command And Control ◽  
Shaanxi Province ◽  
Green Innovation ◽  
Growth Trend ◽  
Different Types ◽  
And Control ◽  
The Impact

Environmental regulation policies are being continuously enriched today. To effectively improve green innovation efficiency through environmental regulations, it is urgent to better understand the impact of different environmental regulations on green innovation efficiency (GIE). However, due to the defects of previous methods for measuring GIE, existing studies may have deviations when analysing the effect of environmental regulations on GIE. To fill this gap, using Shaanxi, China, as a case study, the present study proposes a network data envelopment analysis (DEA) model based on neutral cross-efficiency evaluation to accurately measure the GIE of Shaanxi during the period of 2001–2017. On this basis, this study further analysed the impact of different types of environmental regulations on GIE from three aspects: causality, evolutionary relationships, and effect paths. The results indicate that (1) the GIE of Shaanxi Province showed a “fluctuation-slow growth-steady growth” trend during 2001–2017, and after 2014, the problem of an uncoordinated relationship between technology research and design (R&D) and technology transformation began to appear; (2) there was a linear evolutionary relationship between command-and-control environmental regulation and GIE and a “U”-shaped evolutionary relationship between market-based/voluntary environmental regulation and GIE; and (3) command-and-control environmental regulation and voluntary environmental regulation affected GIE mainly at the technology R&D stage, while market-based environmental regulation ran through the entire process of green innovation activities. This study improves the evaluation methods and theoretical systems of GIE and provides the scientific basis for government decision-makers to formulate environmental regulation policies.

scholarly journals Environmental regulations, capacity utilization, and high-quality development of manufacturing: an analysis based on Chinese provincial panel data

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Hongyang Wang ◽  
Baizhou Li
Keyword(s):  
Environmental Regulation ◽  
Manufacturing Industry ◽  
Negative Impact ◽  
Environmental Regulations ◽  
Rapid Development ◽  
Capacity Utilization ◽  
Utilization Rate ◽  
Quality Development ◽  
High Quality ◽  
The Impact

AbstractThe high-quality development of the manufacturing industry is an important strategic task for Chinese economic development. The rapid development of the manufacturing industry is also accompanied by problems such as overcapacity and environmental pollution. This paper analyzes the impact of capacity utilization on the high-quality development of manufacturing and establishes a nonlinear threshold regression model on this basis, and studies and analyzes environmental regulations as a threshold variable under the influence of capacity utilization rate on the high-quality development of the manufacturing industry. The research results show that: capacity utilization, profitability, foreign direct investment, and government participation all have a significant positive impact on the high-quality development of the manufacturing industry; environmental regulations have a significant negative impact on the high-quality development of the manufacturing industry. And in the model of the effect of capacity utilization on the high-quality development of the manufacturing industry, environmental regulation has a single threshold effect. With the increase in the intensity of environmental regulation, the coefficient and significance of the effect of capacity utilization on the high-quality development of the manufacturing industry have changed. Finally, this article puts forward corresponding policies and suggestions based on the results of data analysis.

scholarly journals Research on the Nonlinear Impact of Environmental Regulation on the Efficiency of China’s Regional Green Economy: Insights from the PSTR Model

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Shuangliang Yao ◽  
Xiang Su
Keyword(s):  
Environmental Pollution ◽  
Environmental Regulation ◽  
Economic Efficiency ◽  
Environmental Regulations ◽  
Threshold Model ◽  
Resource Depletion ◽  
Green Economy ◽  
Eastern Region ◽  
Regional Production ◽  
The Impact

This paper uses the super-efficiency SBM model to measure the green economic efficiency considering undesired output and analyzes the spatial distribution difference of green economic efficiency; secondly, the nonlinear panel threshold model is used to empirically study the nonlinear relationship between environmental regulations and green economic efficiency, and further analyzed the threshold effect of environmental regulations on the efficiency of green economy and concluded as follows. (1) The green economy efficiency index in the eastern region is mostly more significant than 1, and the green economy efficiency in most provinces in the eastern region has improved. These provinces have higher regional production levels and less environmental pollution. The green economy efficiency of the central region is second only to the eastern region. The green economy efficiency of provinces in the western region except Chongqing is less than 1, indicating that these provinces have insufficient regional production, severe environmental pollution, or extensive resource depletion. (2) The impact of environmental regulations on the efficiency of the green economy presents an inverted “U” shape, with a threshold of 0.5128 for environmental regulations. The impact of the industrial structure on the efficiency of the green economy changes from inhibition to promotion after crossing the threshold of the intensity of environmental regulation, and the degree of opening to the outside world has a complementary effect on the efficiency of the green economy. The impact of urbanization on the efficiency of the green economy changes from promotion to suppression after surpassing the threshold of the intensity of environmental regulations.

Tax Policy to Reduce Carbon Emissions in a Distorted Economy: Illustrations from a South Africa CGE Model

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Shantayanan Devarajan ◽  
Delfin S Go ◽  
Sherman Robinson ◽  
Karen Thierfelder
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Alternative Energy ◽  
Carbon Tax ◽  
Cge Model ◽  
Administrative Capacity ◽  
The Cost ◽  
The Impact

Abstract Noting that developing countries may not have the administrative capacity to levy a “pure” carbon tax, we compare the impact of alternative energy taxes with that of a carbon tax in an economy with multiple distortions. We use a disaggregated computable general equilibrium (CGE) model of the South African economy and simulate a range of tax policies that reduce CO2 emissions by 15 percent. Consistent with a “first-best” economy, a carbon tax will have the lowest marginal cost of abatement. But the relationship between a tax on energy commodities and one on pollution-intensive commodities depends critically on other distortions in the system and on structural rigidities in the economy. We demonstrate that if South Africa were able to remove distortions in the labor market, the cost of carbon taxation would be negligible. We conclude that the welfare costs of taxing carbon emissions in developing countries depend more on other distortions than on the country’s own carbon emissions.

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