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    Mandatory recognition of externalities, price elasticity and the market value of firms : 110.899 thesis presented in partial fulfilment of the requirements for MBS degree
    (Massey University, 2009) Mead, John
    The scene for environmental performance and disclosures is changing rapidly from that of a voluntary state to one where both are being mandated. One such regulatory initiative is that of the European Union Emissions Trading Scheme (EU ETS), under which all firms within certain industries have to comply with similar environmental performance and disclosure requirements. The imposition of such requirements can have both adverse and beneficial effects on firm value. The purpose of this study is to examine how EU ETS membership affects the market value of European firms. Using a sample of 1,985 firm-year observations from Great Britain, France, Germany, Spain and Italy, I find that joining the EU ETS has a positive impact on firm value, and this impact is larger for firms with high price elasticity of demand (PED). These findings suggest that a regulated environmental performance and environmental disclosure setting is likely to reduce uncertainties pertaining to externalities, in particular, for firms which are unable to shift their externality costs to their consumers.
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    Agricultural greenhouse gas emissions : costs associated with farm level mitigation : a thesis presented in partial fulfilment of the requirements for the degree of Master of Applied Economics in Economics at Massey University, Palmerston North, New Zealand
    (Massey University, 2009) Wolken, Antony Raymond
    Agricultural greenhouse gas emissions within New Zealand account for 48 percent of all national greenhouse gas emissions. With the introduction of the emissions trading scheme farmers will soon be liable for their emissions, introducing additional physical constraints and financial costs. Farmers that still operate within the sector will have two options to meet emissions targets; to purchase carbon credits from the open market, or mitigate farm level emissions at added costs to the farmer. This study examines the latter case of assessing farm level options for mitigating greenhouse gas emissions, and quantifying the physical and financial costs associated with mitigation strategies. Results show that, based on the assumptions in the study, there are available options for dairy farmers to profitably meet Kyoto protocol emissions targets. Sheep and beef farmers can increase profit, but cannot meet Kyoto protocol emissions targets, through examined scenarios.