Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy

Eva Lyubich, Joseph Shapiro and Reed Walker

AEA Papers and Proceedings, 2018, vol. 108, 136-42

Abstract: This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire US manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly defined industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments.

JEL-codes: D24 L60 Q52 Q53 Q54 Q58 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/pandp.20181089
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Citations: View citations in EconPapers (36)

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Related works:
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018)
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018)
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018)
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018)
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