The effects of climate policy on environmental expenditure and investments : evidence from Sweden

• This study provides new evidence on the determinants of environmental expenditure and investment. In particular, it investigates how environmental expenditure and investment of Swedish industrial firms responded to climate policies, such as the European Union's Emission Trading System (EU ETS) and the Swedish CO2 tax, directed to mitigate air pollution. Overall, an important conclusion of this analysis is that climate policies, both on the national and international levels, were highly relevant motivations for firm environmental expenditure. However, the findings do not support the expectations that the EU ETS and the Swedish CO2 tax encouraged investment in air pollution abatement.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

climate policy

CO2 tax

environmental expenditure and investment

EU ETS

firm-level data

Sweden

Publication and Content Type

ref (subject category)

art (subject category)