The impact of a carbon tax on manufacturing: evidence from microdata

Martin, Ralf, de Preux, Laure B. and Wagner, Ulrich J. (2014) The impact of a carbon tax on manufacturing: evidence from microdata. Journal of Public Economics, 117. pp. 1-14. ISSN 0047-2727

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Abstract

We estimate the impact of a carbon tax 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 full tax and plants that paid only 20% of the tax. Exploiting exogenous variation in eligibility for the tax discount, we find that the carbon tax had a strong negative impact on energy intensity and electricity use. No statistically significant impacts are found for employment, revenue or plant exit.

Item Type:	Article
Official URL:	http://www.sciencedirect.com/science/article/pii/S...
Additional Information:	© 2014 The Authors. Published by Elsevier B.V.
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Date Deposited:	01 Jul 2014 11:54
Last Modified:	12 Dec 2024 00:39
Projects:	RES-000-22-2711, SEJ2007-62908
Funders:	Economic and Social Research Council, Earth Institute at Columbia University, Spanish Ministry for Science and Innovation
URI:	http://eprints.lse.ac.uk/id/eprint/57349

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