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Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy

Eva Lyubich, Joseph Shapiro and Reed Walker ()
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Eva Lyubich: UC Berkeley

No 2117R, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

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)
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env, nep-reg and nep-res
Date: 2018-01, Revised 2018-03
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Related works:
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018) Downloads
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018) Downloads
Working Paper: Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy (2018) Downloads
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