The curious case of Canadian corporate emissions valuation |
| |
Authors: | Paul A Griffin David H Lont Carol Pomare |
| |
Institution: | 1. Graduate School of Management, University of California, Davis, CA 95694, USA;2. Department of Accountancy and Finance, University of Otago, Dunedin, NZL 9054, New Zealand;3. Ron Joyce Center for Business Studies, Mount Allison University, 144 Main Street, Sackville, NB, E4L 1A7, Canada |
| |
Abstract: | This study examines the relevance to investors of the greenhouse gas (GHG) emissions of publicly-traded Canadian firms over 2006–2018. Based on two independent datasets, we document that firm value varies positively in the level of emissions. This result suggests that the Canadian setting differs from those studied previously, notably because of low climate litigation risk and national and subnational expenditure policies to offset climate impacts on the economy. While national and subnational expenditures to mitigate emissions affect firms' on-balance-sheet costs and profits, investors price the future payoffs to these expenditures into firm value. Supporting this view, we find that the positive relation between emissions and firm value in Canada is amplified for high GHG-intensity firms (mainly energy firms in Alberta), whose future payoffs to environmental policies and spending exceed those of low GHG-intensity firms. Our results are consistent with investors’ recognition of the benefits to firm value of national and subnational policies to decarbonize the Canadian economy. |
| |
Keywords: | Canadian greenhouse gas emissions Carbon disclosure project Emissions valuation Emissions intensity Decarbonization G10 M41 M48 Q51 Q56 |
本文献已被 ScienceDirect 等数据库收录! |
|