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Carbon costs and industrial firm performance: Evidence from international microdata

Author

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  • Arjan Trinks

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Erik Hille

    (HHL Leipzig Graduate School of Management)

Abstract

Entrepreneurs seem to be adapting their business operations to climate policy, instead of relocating their business to countries without or with less stringent climate policies. There is little to no evidence that climate policy has depressed the profit, productivity or turnover of an average industrial firm. This follows from a CPB study into the effect of carbon costs for approximately 3 million firms in 32 countries between 2000 and 2019.

Suggested Citation

  • Arjan Trinks & Erik Hille, 2023. "Carbon costs and industrial firm performance: Evidence from international microdata," CPB Discussion Paper 445, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:445
    DOI: 10.34932/e4j6-sg87
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    1. Bart van Ark & Dirk Pilat & Klaas de Vries, 2023. "Are Pro-Productivity Policies Fit for Purpose? Productivity Drivers and Policies in G-20 Economies," Working Papers 038, The Productivity Institute.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • 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
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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