ABSTRACT The literature has primarily focused on regulated and compliance‐oriented carbon markets and has rarely explored the effects of voluntary carbon‐rights trading (VCRT) across industries. The present study employs an event‐study approach to examine industry‐level stock‐return responses to Taiwan's announcement of a VCRT policy. The results reveal that market reactions are concentrated in the post‐event window and produce negative abnormal returns for carbon‐intensive and low‐tech industries, while producing positive abnormal returns for high‐tech industries. These patterns suggest that investors reassess firms' exposure to transition risks and opportunities associated with VCRT and highlight the importance of aligning corporate strategies with climate‐related policy signals.
Hsu et al. (Mon,) studied this question.