Journal article
Global firms and emissions: Investigating the dual channels of emissions abatement
Journal of environmental economics and management, v 118, 102772
Mar 2023
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper finds that both importing and exporting reduce firm-level emission intensities. We develop a theoretical model in which firms jointly determine the extent of abatement investment as well as whether or not to import intermediate inputs and export final goods. The model demonstrates a complementarity between trading decisions and abatement investment such that trading firms invest more in abatement technology and feature lower emission intensities. Using Chinese firm-level data, we estimate a theory-based regression model with instrument variables to account for the endogeneity issue associated with firms’ trading statuses. Our regression results show that both importing and exporting reduce firm-level emission intensities by over 15 percent.
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Details
- Title
- Global firms and emissions: Investigating the dual channels of emissions abatement
- Creators
- Ohyun Kwon - Drexel UniversityHao Zhao - Renmin University of ChinaMin Qiang Zhao - Xiamen University
- Publication Details
- Journal of environmental economics and management, v 118, 102772
- Publisher
- Elsevier
- Grant note
- 71773102 / National Natural Science Foundation of China (http://dx.doi.org/10.13039/501100001809)
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000926338400001
- Scopus ID
- 2-s2.0-85146661790
- Other Identifier
- 991021861631804721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business
- Economics
- Environmental Studies