The impact of the EU ETS on the corporate value of European electricity corporations

► The EU ETS impact on electricity corporate value in phase I and II is compared. ► A modified multifactor market model is employed. ► The EU ETS impact on corporate value has changed from phase I to phase II. ► The impact changes are mainly resulted from the EUA allocation policy adjustment. ► The effect of reducing CO2 emission on corporate value doesn't emerge until phase II.