China’s Coal Power Policies: Stock Market Reactions and Investor Expectations ()
ABSTRACT
This paper uses the event study method to analyze
the market reaction to the coal power policy in different stages after the
proposal of the dual carbon target and finds that the coal power policy has a significant impact on the
stock market of China’s high carbon emission companies. Due to the different
contents of policies in different stages, the stock market reaction is
heterogeneous, indicating that the coal power policy would change the market
expectations of investors. Furthermore, we use beta value to measure investor
expectations and detect that carbon emission intensity and ESG score have a
significant effect on the beta value, which reveals that China’s low-carbon
transition practice has an impact on investor expectations in the stock market.
These findings provide evidence and information for investors to avoid the risk
of low-carbon transition and for policymakers to better understand investor
expectations and design more reasonable policies.
Share and Cite:
Huang, J. (2024) China’s Coal Power Policies: Stock Market Reactions and Investor Expectations.
Open Journal of Social Sciences,
12, 410-436. doi:
10.4236/jss.2024.123028.
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