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Assessing the Effects of Climate Policy on Companies' Greenhouse Gas Emissions

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  • Ana Maria Montoya Gómez
  • Markus Zimmer

Abstract

We study the effect of climate policy on companies’ greenhouse gas emissions using emissions data for the headquarters and subsidiaries of the world’s biggest manufacturing, energy, and utility companies. Our results suggest that financial incentives and legal requirements to audit energy use reduce companies’ emissions, whereas support schemes aimed at promoting the combined generation of heat and power increased emissions of non-utility companies and feed-in tariffs aimed at increasing the use of renewable energy sources for electricity generation increase emissions of utility companies. We also find loans and subsidies for energy efficiency improvements to increase emissions in the short term. In addition, our results provide a solid foundation for researchers seeking consistent and comparable estimates on the mitigation effects of typical climate policy instruments in a cross-country setting.

Suggested Citation

  • Ana Maria Montoya Gómez & Markus Zimmer, 2017. "Assessing the Effects of Climate Policy on Companies' Greenhouse Gas Emissions," CESifo Working Paper Series 6651, CESifo.
    • Handle: RePEc:ces:ceswps:_6651
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6651.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    climate policy evaluation; greenhouse gas emissions; cross-country micro panel data; companies; firms;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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