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 publication
|Title of the publication
|Real effects of climate policy: Financial constraints and spillovers
|Journal name/Book publisher
|Journal 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.
|Sohnke M Bartram
|Affiliation Author #1
|University of Warwick and CEPR
|Affiliation Author #2
|Ohio State University
|Affiliation Author #3
|University of Florida