Policies that affect the cost of using fossil fuels in production have a complex impact on the economy. In this paper, we focus on the role of these policies for the pattern of comparative advantage through their effect on production costs in manufacturing industries. Using data on carbon prices and fossil fuel subsidies, we show that less stringent carbon pricing policies increase comparative advantage ...
This paper provides the most comprehensive assessment of how fuel taxation reduces climate and pollution externalities with a quasi-experimental evaluation of the world’s largest environmental tax reform. Leveraging multiple causal inference methods, we compare carbon and air pollutant emissions of the actual and counterfactual German transport sector following the 1999 eco-tax reform and demonstrate ...
