- Additional Authors
- Description
- 49 p.; 21 x 29.7cm.
- Summary
- This paper investigates the impact of changes in the stringency of environmental policies on productivity growth in OECD countries. Using a new environmental policy stringency (EPS) index, it estimates a reduced-form model of multi-factor productivity growth, where the effect of countries' environmental policies varies with pollution intensity of the industry and technological advancement. A multi-layer analysis provides insights at the aggregate economy, the industry and the firm level. At the aggregate economy level, a negative effect on productivity growth is found one year ahead of the policy change. This negative "announcement effect" is offset within three years after the implementation. At the industry level, a tightening of environmental policy is associated with a short-term increase in industry-level productivity growth, for the most technologically advanced country-industry pairs. This effect diminishes with the distance to the global productivity frontier, becoming insignificant at larger distances. At the firm level, only the technologically most advanced firms show a positive effect on productivity growth from a tightening of environmental policies, while a third of firms, the less productive ones, experience a productivity slowdown.
- Series Statement
- OECD Economics Department Working Papers, 1815-1973 ; no.1179
- Uniform Title
- OECD Economics Department Working Papers, no.1179.
- Subject
- LCCN
- 10.1787/5jxrjnb36b40-en
- OCLC
- oecd-lib-004713
- Author
Albrizio, Silvia.
- Title
Empirical Evidence on the Effects of Environmental Policy Stringency on Productivity Growth [electronic resource] / Silvia Albrizio, Tomasz Koźluk and Vera Zipperer
- Imprint
Paris : OECD Publishing, 2014.
- Series
OECD Economics Department Working Papers, 1815-1973 ; no.1179
OECD Economics Department Working Papers, 1815-1973 ; no.1179.
- Connect to:
- Indexed Term
Economics
Environment
- Added Author
Koźluk, Tomasz.
Zipperer, Vera.
- Other Standard Identifier
10.1787/5jxrjnb36b40-en doi