Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/264291
Authors: 
Rottner, Elisa
von Graevenitz, Kathrine
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 21-027
Version Description: 
This version: August 26, 2022
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Drastic emission reductions are necessary to combat climate change. However, despite several climate policies, carbon emissions from German manufacturing have actually increased between 2005 and 2017. In this paper, we provide evidence of how the policy mix overall has affected the German manufacturing sector in its entirety. Using detailed administrative micro-data at the product-level, we decompose changes in carbon emissions between 2005 and 2017 into scale, composition (changes in the mix of goods produced) and technology (emission factors of production) effects. We find that much of the increase in carbon emissions is due to an increase in manufacturing's production scale. Relative to the strong output growth, our analysis reveals a clean-up of manufacturing of 9 %. This clean-up is exclusively due to a shift towards a cleaner product composition from 2011 onwards, while production technique has mostly become dirtier. The results display substantial sectoral heterogeneity and are largely driven by the most energy and emission intensive sectors.
Subjects: 
Carbon emissions
Climate Policy
Statistical Decomposition
Manufacturing
JEL: 
D22
L60
Q41
Q48
Document Type: 
Working Paper

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