Corporate power purchase agreements and the value of decarbonization
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 11 December 2023
Abstract
Purpose
The purpose of this paper is to examine if the announcement of corporate power purchase agreements (PPAs) induce significant effects on the electricity buyers' stock returns.
Design/methodology/approach
This is an event study based on the Fama French Five Factor Model which uses several significance tests and robust regression approaches.
Findings
The announced closing of corporate PPAs induces significant positive abnormal stock returns. This announcement effect is even more pronounced in case of virtual PPAs.
Originality/value
To the best of the author‘s knowledge, this study is the first which explictly investigates the announcement effects of corporate PPAs, which are closed between the owner of the renewable energy asset and the institutional end consumer. In addition, this study extends the event study approach by robust regression methods.
Keywords
Citation
Hundt, S. (2023), "Corporate power purchase agreements and the value of decarbonization", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-03-2023-0008
Publisher
:Emerald Publishing Limited
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