The Impacts of the Climate Change Levy on business: Evidence from Microdata

Ralf Martin, Ulrich Wagner and Laure de Preux

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We 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.

Keywords: Climate policy; carbon tax; United Kingdom; manufacturing; impact assessment (search for similar items in EconPapers)
JEL-codes: D21 Q41 Q48 Q54 (search for similar items in EconPapers)
Date: 2009-03
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: The impacts of climate change levy on business: evidence from microdata (2009)
Working Paper: The impacts of climate change levy on business: evidence from microdata (2009)
Working Paper: The impacts of the climate change levy on business: evidence from microdata (2009)
Working Paper: The impacts of the Climate Change Levy on business: evidence from microdata (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0917

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