Environmental Policy and Firm Performance in Europe: A Difference-in-Differences Approach with Spillovers
欧洲环境政策与企业表现:考虑溢出的双重差分方法
In this paper we investigate the causal impact of the European Union Emissions Trading System, a cap-and-trade scheme limiting greenhouse gas emissions of firms, on their environmental performance. Although previous studies have focused primarily on the effect of the emission cap imposed by the policy, we argue that the trading mechanism creates complex interdependencies among firms that can change the policy's intended effects. We develop a novel Difference-in-Differences…