The impact of a carbon tax on financial performance and innovation performance: an empirical study of the automotive industry

Fahimeh R. Chomachaei () and Davood Golmohammadi
Additional contact information
Fahimeh R. Chomachaei: University of Massachussets Boston
Davood Golmohammadi: University of Massachussets Boston

Environmental Economics and Policy Studies, 2025, vol. 27, issue 1, No 4, 84 pages

Abstract: Abstract The pressing need to address climate change has resulted in the implementation of environmental regulations, such as carbon taxes, aimed at reducing carbon emissions. However, the impact of these regulations on firm performance, particularly within the U.S. automotive industry, remains inadequately understood. This research empirically examines the potential effects of the carbon tax policy on both financial performance and innovation, with a specific focus on assessing the validity of Porter’s hypothesis. Utilizing firm-level panel data from U.S. automotive companies spanning the years 2000 to 2019, the analysis reveals a crowding-out effect of the carbon tax on both financial and innovation performance in the U.S. automotive industry.

Keywords: Environmental regulations; Carbon tax; Innovation; Financial performance; Empirical study (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10018-024-00408-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:envpol:v:27:y:2025:i:1:d:10.1007_s10018-024-00408-1

Ordering information: This journal article can be ordered from
http://www.springer. ... mental/journal/10018

DOI: 10.1007/s10018-024-00408-1

Access Statistics for this article

Environmental Economics and Policy Studies is currently edited by Ken-Ichi Akao

More articles in Environmental Economics and Policy Studies from Springer, Society for Environmental Economics and Policy Studies - SEEPS Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().