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Climate Policy & Corporate Behavior

Author

Listed:
  • Nicola Commins
  • Seán Lyons
  • Marc Schiffbauer
  • Richard S.J. Tol

Abstract

In this paper, we study the impact of energy taxes and the EU ETS on a large number of firms in Europe between 1996 and 2007. Using company level micro-data, we examine how firms in different sectors were affected by environmental policies. Aspects of behavior and performance studied include total factor productivity, employment levels, investment behavior and profitability. On the whole, energy taxes increased total factor productivity and returns to capital but decreased employment, with a mixed effect on investment, for the sectors included in our analysis. However, large sectoral variation is observed, with some industries losing out in terms of productivity and profitability when faced with increased energy taxes, while others benefitted.

Suggested Citation

  • Nicola Commins & Seán Lyons & Marc Schiffbauer & Richard S.J. Tol, 2011. "Climate Policy & Corporate Behavior," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 51-68.
  • Handle: RePEc:aen:journl:32-4-a03
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    Citations

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    Cited by:

    1. Tol, Richard S.J., 2017. "The structure of the climate debate," Energy Policy, Elsevier, vol. 104(C), pages 431-438.
    2. Yang, Lin & Li, Fengyu & Zhang, Xian, 2016. "Chinese companies’ awareness and perceptions of the Emissions Trading Scheme (ETS): Evidence from a national survey in China," Energy Policy, Elsevier, vol. 98(C), pages 254-265.
    3. Martin, Ralf & Muûls, Mirabelle & de Preux, Laure B. & Wagner, Ulrich J., 2014. "On the empirical content of carbon leakage criteria in the EU Emissions Trading Scheme," Ecological Economics, Elsevier, vol. 105(C), pages 78-88.
    4. Marit E. Klemetsen & Knut Einar Rosendahl & Anja Lund Jakobsen, 2016. "The impacts of the EU ETS on Norwegian plants' environmental and economic performance," Discussion Papers 833, Statistics Norway, Research Department.
    5. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2016. "Organisational change and the productivity effects of green technology adoption," Resource and Energy Economics, Elsevier, vol. 43(C), pages 172-194.
    6. Nicola De Vivo & Giovanni Marin, 2017. "How neutral is the choice of the allocation mechanism in cap-and-trade schemes? Evidence from the EU-ETS," SEEDS Working Papers 0417, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2017.
    7. aus dem Moore, Nils & Großkurth, Philipp & Themann, Michael, 2017. "Multinational corporations and the EU emissions trading system: Asset erosion and creeping deindustrialization?," Ruhr Economic Papers 719, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2012. "Green innovations and organizational change: Making better use of environmental technology," ZEW Discussion Papers 12-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Gonseth, Camille & Cadot, Olivier & Mathys, Nicole A. & Thalmann, Philippe, 2015. "Energy-tax changes and competitiveness: The role of adaptive capacity," Energy Economics, Elsevier, vol. 48(C), pages 127-135.
    10. Salas-Fumás, Vicente & Rosell-Martínez, Jorge & Delgado-Gómez, José Manuel, 2016. "Capacity, investment and market power in the economic value of energy firms," Energy Economics, Elsevier, vol. 53(C), pages 28-39.
    11. repec:eee:enepol:v:109:y:2017:i:c:p:154-180 is not listed on IDEAS
    12. repec:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0051-1 is not listed on IDEAS
    13. Rammer, Christian & Gottschalk, Sandra & Peneder, Michael & Wörter, Martin & Stucki, Tobias & Arvanitis, Spyros, 2017. "Does energy policy hurt international competitiveness of firms? A comparative study for Germany, Switzerland and Austria," Energy Policy, Elsevier, vol. 109(C), pages 154-180.
    14. Joltreau, Eugénie & Sommerfeld, Katrin, 2016. "Why does emissions trading under the EU ETS not affect firms' competitiveness? Empirical findings from the literature," ZEW Discussion Papers 16-062, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    15. Robert Lehmann, 2012. "Ist Ostdeutschland von steigenden Energiepreisen mehr betroffen?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(05), pages 18-23, October.

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    JEL classification:

    • F0 - International Economics - - General

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