Carbon tax, pollution and spatial location of heterogeneous firms

Nelly Exbrayat, Stephane Riou () and Skerdilajda Zanaj

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: In this paper, we investigate the e¤ects of a global carbon tax and its ability to curb carbon emissions in a two-country setup characterized by an uneven spatial distribution of mobile heterogeneous firms. Trade takes place between the two asymmetric countries and carbon dioxide (CO2) emissions are a by-product of the production activity of manufac- turing firms. We advance the hypothesis that although a global carbon tax is an attractive environmental measure, it may be subject to debate because, among other effects, it can have a significant impact on the location of heterogeneous firms as well as on foreign trade patterns worldwide.

Keywords: Global carbon tax: spatial selection; heterogeneous firms (search for similar items in EconPapers)
JEL-codes: F12 F15 H87 Q28 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ene, nep-env, nep-pbe and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://wwwen-archive.uni.lu/content/download/8632 ... ogeneous%20firms.pdf (application/pdf)

Related works:
Working Paper: Carbon tax, pollution and spatial location of heterogeneous firms (2016)
Working Paper: Carbon tax, pollution and spatial location of heterogeneous firms (2016)
Working Paper: Carbon tax, pollution and the spatial location of heterogeneous firms (2015)
Working Paper: Carbon tax, pollution and the spatial location of heterogeneous firms (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:15-17

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