Can renewable energy certificates buffer the impact of power outages on stock performance?
Abstract
This study uses an event study approach to investigate the impact of Renewable Energy Certificates (RECs) on company stock performance during an unexpected nationwide power outage on May 17, 2021. Our data consists of 28 companies that have installed renewable energy facilities. The results show that manufacturers holding T-RECs experienced a significant decline in stock prices on the day of the power outage, while financial and service T-REC holders were not affected. Nevertheless, over the following five days, shareholders of manufacturing companies experienced a positive daily abnormal return of 0.0046%, which is higher than the daily abnormal return of 0.0023% for financial and service companies.
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References
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