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High Tariffs, High Stakes: The Policy Drivers Behind Firm-Level Adoption of Green Technologies

Author

Listed:
  • Samuel Rosenow
  • Alvaro Espitia
  • Ana Margarida Fernandes

Abstract

Addressing climate change requires green technology deployment. This paper uses firm-level import data in 35 emerging markets to examine how trade policies affect firms’ imports of products associated with solar, wind power, and electric vehicle value chains. Panel estimates show a particularly negative effect of tariffs on green value chain imports compared to average imports, especially in solar and downstream segments. This effect is pervasive from import values and quantities to import probabilities, with undiversified firms most affected. Import regulations have smaller, varied impacts. Emerging markets should avoid protectionist policies, as local firms depend on imports to adopt green technologies.

Suggested Citation

  • Samuel Rosenow & Alvaro Espitia & Ana Margarida Fernandes, 2025. "High Tariffs, High Stakes: The Policy Drivers Behind Firm-Level Adoption of Green Technologies," CESifo Working Paper Series 11726, CESifo.
    • Handle: RePEc:ces:ceswps:_11726
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11726.pdf
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    More about this item

    Keywords

    imports; green value chains; trade policy; tariffs; non-tariff measures; firm-level imports; decarbonization value chains; green technology adoption; trade and environment; green technologies;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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