The Impacts of the Climate Change Levy on business: Evidence from Microdata
AbstractWe estimate the impacts of the Climate Change Levy (CCL) on manufacturing plants using panel data from the UK production census. Our identification strategy builds on the comparison of outcomes between plants subject to the CCL and plants that were granted an 80% discount on the levy after joining a Climate Change Agreement (CCA). Exploiting exogenous variation in eligibility for CCA participation, we find that the CCL had a strong negative impact on energy intensity and electricity use. We cannot reject the hypothesis that the tax had no detrimental effects on economic performance and on plant exit.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0917.
Date of creation: Mar 2009
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
Climate policy; carbon tax; United Kingdom; manufacturing; impact assessment;
Other versions of this item:
- Ralf Martin & Laure B. de Preux & Ulrich J. Wagner, 2009. "The impacts of the Climate Change Levy on business: evidence from microdata," Grantham Research Institute on Climate Change and the Environment Working Papers 6, Grantham Research Institute on Climate Change and the Environment.
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- 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
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
- NEP-ENE-2009-06-17 (Energy Economics)
- NEP-ENV-2009-06-17 (Environmental Economics)
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