RT info:eu-repo/semantics/article
T1 Accounting for Carbon Emission Allowances: An Empirical Analysis in the EU ETS Phase 3
A1 García Torea, Nicolás
A1 Giordano Spring, Sophie
A1 Larrinaga González, Carlos
A1 Rivière Giordano, Géraldine
K1 Economía
K1 Economics
K1 Ciencias medioambientales
K1 Environmental sciences
AB This investigation studies the accounting treatment of the carbon emission allowances of EU Emissions Trading System participants to explore whether the auctioning allocation system implemented in 2013 led to changes in accounting practices. This investigation adds to Allini, Giner, and Caldarelli (2018. “Opening the Black Box of Accounting for Greenhouse Gas Emissions: The Different Views of Institutional Bodies and Firms.” Journal of Cleaner Production 172: 2195–2205.) by performing a comparative study of how emission allowances are recorded in the 2011 and 2016 financial statements of a large sample of the highest emitters in the system that operate in eight different industries. We also update the analysis of the role of local standards in shaping carbon accounting practices in a context characterised by the lack of IFRS prescription. We found that auctioning did not modify accounting practices as they continue to be ‘messy’ and often absent. The high level of non-disclosure and the prevailing use of the ‘net method’ conceal the burden of allowances from users of financial statements. Additionally, we report that firms’ carbon accounting practices are more aligned with their local standard when it allows a limited representation of the financial impact of allowances. Therefore, current accounting practices are far from enabling an adequate assessment of the financial impact and risks resulting from carbon markets.
PB Taylor & Francis Group
SN 0969-160X
YR 2021
FD 2021-12
LK http://hdl.handle.net/10259/8900
UL http://hdl.handle.net/10259/8900
LA eng
NO This work was supported by Autorité des Normes Comptables (project ANC n°57-1-2-00508): [GrantNumber CR 2016-012].
DS Repositorio Institucional de la Universidad de Burgos
RD 17-may-2024