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 (194)

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Working Paper: The impact of a carbon tax on manufacturing: evidence from microdata (2014)
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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

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