Climate Regulation and Emissions Abatement: Theory and Evidence from Firms' Disclosures

• 成果类型: Article
• 署名作者: Ramadorai, Tarun; Zeni, Federica
• 署名单位: Imperial College London; Center for Economic & Policy Research (CEPR); The World Bank
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.00482
• 发表日期: 2024
• 关键词: climate change; Climate regulation; carbon emissions; finance; INVESTMENT

摘要

We measure firms' beliefs about climate regulation, plans for future abatement, and current emissions mitigation from responses to the Carbon Disclosure Project. These measures vary strikingly around the Paris announcement. A dynamic model of a representative firm facing a future carbon levy, trading off abatement and capital growth, and facing convex adjustment costs cannot fit the data. A two-firm model with crossfirm reputational externalities, heterogeneous beliefs over climate regulation, and leaderfollower interactions does. Out of sample, the model predicts firms' reactions when the United States exits the Paris agreement. Firms' beliefs about climate regulation strongly affect abatement, and crossfirm interactions amplify regulatory impacts.