Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy

Eva Lyubich, Joseph Shapiro and Reed Walker

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. 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: F18 F64 H23 Q56 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2018-08
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
https://www2.census.gov/ces/wp/2018/CES-WP-18-03R.pdf Revised version, 2018 (application/pdf)
https://www2.census.gov/ces/wp/2018/CES-WP-18-03.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:18-03

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