The effects of climate policy on environmental expenditure and investment: evidence from Sweden

Jūratė Jaraite-Kažukauskė, Andrius Kazukauskas and Tommy Lundgren

Journal of Environmental Economics and Policy, 2014, vol. 3, issue 2, 148-166

Abstract: This study provides new evidence on the determinants of environmental expenditure and investment . In particular, it investigates how environmental expenditure and investment of Swedish industrial firms responded to climate policies, such as the European Union's Emission Trading System (EU ETS) and the Swedish CO 2 tax, directed to mitigate air pollution. Overall, an important conclusion of this analysis is that climate policies, both on the national and international levels, were highly relevant motivations for firm environmental expenditure . However, the findings do not support the expectations that the EU ETS and the Swedish CO 2 tax encouraged investment in air pollution abatement.

Date: 2014
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DOI: 10.1080/21606544.2013.875948

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