1. The Effect of Carbon Pricing on Firm Emissions: Evidence from the Swedish CO2 Tax.
- Author
-
Martinsson, Gustav, Sajtos, László, Strömberg, Per, and Thomann, Christian
- Subjects
CARBON pricing ,CARBON taxes ,CARBON dioxide mitigation ,EMISSION control ,ENVIRONMENTAL impact charges ,SOCIAL responsibility of business ,BUSINESS & the environment - Abstract
Sweden was one of the first countries to introduce a carbon tax back in 1991. We assemble a unique data set tracking CO
2 emissions from Swedish manufacturing firms over 26 years to estimate the impact of carbon pricing on firm-level emission intensities. We estimate an emission-to-pricing elasticity of around two, with substantial heterogeneity across subsectors and firms, where higher abatement costs and tighter financial constraints are associated with lower elasticities. A simple calibration suggests that 2015 CO2 emissions from Swedish manufacturing would have been roughly 30% higher without carbon pricing. [ABSTRACT FROM AUTHOR]- Published
- 2024
- Full Text
- View/download PDF