RRBM Honor Roll

The RRBM Honor Roll publications have been selected as examples of research that is both rigorous and relevant. The listing below offers credible insights for society.

These publications have been selected for the RRBM Honor Roll by the Selection Board with the exception of 2019 articles selected by a pre-test review panel.


Nature of the publicationJournal article
Title of the publicationReal effects of climate policy: Financial constraints and spillovers
Journal name/Book publisherJournal of Financial Economics

We document that localized policies aimed at mitigating climate risk can have unintended consequences due to regulatory arbitrage by firms. Using a difference-in-differences framework to study the impact of the California cap-and-trade program with U.S. plant-level data, we show that financially constrained firms shift emissions and output from California to other states where they have similar plants that are underutilized. By contrast, unconstrained firms do not make such adjustments. Overall, unconstrained firms do not reduce their total emissions, whereas constrained firms increase their total emissions after the cap-and-trade rule, undermining the effectiveness of the policy.

Author #1Sohnke M Bartram
Affiliation Author #1University of Warwick and CEPR
Author #2Kewei Hou
Affiliation Author #2Ohio State University
Author #3Sehoon Kim
Affiliation Author #3University of Florida