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The Effect of Climate Policy on Competitiveness of Manufacturing in British Columbia - Akio Yamazaki

Date & Time:
February 24, 2016 | 3:00 pm - 4:30 pm
SS 423
Akio Yamazaki

ABSTRACT:  This paper investigates the impacts of British Columbia’s carbon tax on manufacturing plants. I use detailed plant-level data from 2004-2011 to estimate its impacts by a semiparametric matching method. My results suggest that among surviving plants, the BC carbon tax leads to a decline in output, employment, and wage while encouraging more export, but having no effect on labor productivity. I also find that the negative employment effect falls only on  production workers. Non-production workers are unaffected by the policy. Finally, I examine extensive margin adjustments and find that the carbon tax reduces a probability of plant exit.

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