Heterogeneous Cleaners

Résumé du livre

This article examines the heterogeneous emission effects among exporting firms. We propose that, in addition to the reduction effect of technology adoption on exporting firms' emissions, there exists an incremental effect of higher safety standard compliance. We develop a simple theoretical model that enables exporting firms to endogenously select the optimal production mode based on foreign consumers' preferences. We investigate the empirical behavior of firm exports and carbon emissions using a semiparametric model to account for heterogeneity. The empirical results explain the conflicting conclusions in the literature on firm exports and emissions. Our analysis suggests subsidizing small firms while imposing taxes on large firms to enhance energy efficiency and environmental protection.