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Carbon Trading and Information Uncertainty
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TitleCarbon Trading and Information Uncertainty  
AuthorLuo Wei, Li Shaokun and Cao Qun  
OrganizationGuanghua School of Management, Peking University;China Academy of Launch Vehicle Technology;; 
Key WordsCarbon Trading; Carbon Market Segmentation; Information Uncertainty 
AbstractIn 2013, China launched seven carbon trading pilots. The direct impact of carbon trading on companies is an important empirical question. This paper analyzes the official standards for each carbon trading pilot, and uses the A-share listed companies and their subsidiaries involved in carbon trading industries to investigate the impact of carbon trading initiation, carbon market segmentation, and carbon constraint strength on information uncertainty. The study documents that carbon trading increases the stock price volatility of relevant firms. Under the situation of carbon market segmentation, the more carbon markets the firm participates, the more information uncertainty increases. Moreover, the stock price volatility increases more for firms facing stronger carbon market constraints. Further partition analyses show that the effects of carbon trading mainly exist in state-owned companies and those with less analyst coverage. 
Serial NumberWP1435 
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