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

Ralf Martin, Laure de Preux and Ulrich Wagner

Journal of Public Economics, 2014, vol. 117, issue C, 1-14

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.

Keywords: Carbon tax; Climate Change Levy; Energy use; Manufacturing; Policy evaluation; UK (search for similar items in EconPapers)
JEL-codes: D21 H23 Q41 Q48 Q54 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (190)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272714001078
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The impact of a carbon tax on manufacturing: evidence from microdata (2014)
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:eee:pubeco:v:117:y:2014:i:c:p:1-14

DOI: 10.1016/j.jpubeco.2014.04.016

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().