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The effects of climate policy on environmental expenditure and investment: evidence from Sweden

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  • Jurate Jaraite
  • Andrius Kazukauskas
  • Tommy Lundgren

Abstract

This study provides new evidence on the determinants of environmental expenditure and investment . In particular, it investigates how environmental expenditure and investment of Swedish industrial firms responded to climate policies, such as the European Union's Emission Trading System (EU ETS) and the Swedish CO 2 tax, directed to mitigate air pollution. Overall, an important conclusion of this analysis is that climate policies, both on the national and international levels, were highly relevant motivations for firm environmental expenditure . However, the findings do not support the expectations that the EU ETS and the Swedish CO 2 tax encouraged investment in air pollution abatement.

Suggested Citation

  • Jurate Jaraite & Andrius Kazukauskas & Tommy Lundgren, 2014. "The effects of climate policy on environmental expenditure and investment: evidence from Sweden," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(2), pages 148-166, July.
    • Handle: RePEc:taf:teepxx:v:3:y:2014:i:2:p:148-166
    DOI: 10.1080/21606544.2013.875948
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    Cited by:

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    2. Mardones, Cristian, 2021. "Ex-post evaluation and cost-benefit analysis of a heater replacement program implemented in southern Chile," Energy, Elsevier, vol. 227(C).
    3. Finn R. Førsund, 2021. "Performance measurement and joint production of intended and unintended outputs," Journal of Productivity Analysis, Springer, vol. 55(3), pages 157-175, June.
    4. Florence Depoers & Tiphaine Jérôme, 2017. "Environmental expenditure disclosure strategies in a regulated context [Stratégies de publication des dépenses environnementales dans un cadre réglementaire]," Post-Print hal-01576195, HAL.
    5. Yu, Shiwei & Gao, Siwei & sun, Han, 2016. "A dynamic programming model for environmental investment decision-making in coal mining," Applied Energy, Elsevier, vol. 166(C), pages 273-281.
    6. Purcel, Alexandra-Anca, 2023. "Environmental protection expenditures and EU ETS: Evidence from Romania," Finance Research Letters, Elsevier, vol. 58(PB).
    7. Qiang Li & Wenjuan Ruan & Tiantian Sun & Erwei Xiang, 2020. "Corporate governance and corporate environmental investments: Evidence from China," Energy & Environment, , vol. 31(6), pages 923-942, September.
    8. Moriah Bostian & Rolf Färe & Shawna Grosskopf & Tommy Lundgren, 2022. "Prevention or cure? Optimal abatement mix," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 503-531, October.
    9. Meyer Andrew & Pac Grzegorz, 2015. "How Responsive Are EU Coal-Burning Plants to Changes in Energy Prices?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1481-1506, July.
    10. Amjadi, Golnaz, 2020. "Essays on Energy Efficiency, Environmental Regulation and Labor Demand in Swedish Industry," Umeå Economic Studies 982, Umeå University, Department of Economics.

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