The Impact of Carbon Risks on Energy Company Stock Prices: An Empirical Study based on Investor Concerns

Yuqing Wang; Han Cheng

doi:10.54097/hbem.v9i.9064

Authors

Yuqing Wang
Han Cheng

DOI:

https://doi.org/10.54097/hbem.v9i.9064

Keywords:

Carbon Risks; Stock Price; Investor Concerns; VAR Model; Baidu Index; Intermediary Effect.

Abstract

Based on a Baidu index perspective, this paper constructs an intermediary effect model and a VAR model to investigate the impact of carbon risk and investor concerns on the share prices of energy companies, using daily data on the closing prices of energy company stocks and trading on eight carbon emission rights exchanges. The results show that there is a long-term interaction among carbon risks, investor concerns and energy company share prices. Analysis of the intermediary effect shows that investor concerns have a positive intermediary effect, reinforcing the response of corporate share prices to carbon risk. Finally, the paper makes recommendations for the investment decisions of Chinese investors, the strategic development of energy companies and the development of the carbon emission rights trading market.

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