Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/304431 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 2410
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
Climate change is one of the pressing issues of our time, and carbon emissions caused by industrial production are among its most important drivers. This paper analyses how multi-product firms adjust to an increase in the cost of emissions (e.g. due to the introduction of emissions pricing) in terms of their output, product mix, and technology, and how their emissions change in response, depending on firm-specific production patterns and cost structures. My model delivers a (qualitative and quantitative) assessment of changes in aggregate emissions via conventional margins of firm adjustment that have not been sufficiently studied in the literature so far. In numerical simulations, I find that negative effects of emissions pricing on emissions of multi-product firms can be sizeable.
Subjects: 
emissions
carbon tax
multi-product firms
product mix
technology
JEL: 
Q54
Q56
D24
Document Type: 
Working Paper

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