European Center for Advanced Research in Economics and Statistics

to be announced
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Dear all,

You are kindly invited to the next Joint FirmAnalysis Seminar of the NBB, KU Leuven, UAntwerpen, UCLouvain, UGent, UHasselt,ULB, ULiège and UMons

Given by MisatoSato (London School of Economics and Political Science)

on Carbon pricingcompensation and competitiveness: Lessons from UK manufacturing

Joint paper with PierBasaglia and Elisabeth T. Isaksen

Abstract:

Carbon pricing is the cornerstone of cost-effective climate policy butis often paired with compensation to carbon- and energy-intensive firms tomitigate carbon leakage risk. To what extent do such schemes compromiseeffective carbon price incentives? This paper examines the causal impact ofcompensation payments for indirect carbon costs embodied in electricity pricesusing UK plant level data. We hypothesize that the compensation paymentsincentivized firms to increase production and electricity use with no effect onelectricity intensity. By exploiting firm level inclusion criteria in both adifference-in-differences and regression discontinuity framework we find thatcompensated firms maintained a higher production and energy use relative touncompensated firms with no detectable effect on energy intensity.

The seminar will take place on Thursday,30 March at 16.30 in in the Auditorium of the National Bank ofBelgium (Room A1), rue Montagne aux Herbes potagères 61, 1000 Brussels.

Prof. Sato will be present at the bank on 30 March and there are severalslots for a meeting with her. Please contact us at nbbfirmanalysis.seminar@nbb.be if you are interested. This is notjust a polite phrase; we very much invite you or any of your colleagues to makeuse of this opportunity.

Due to security measures, weemphasize the need for you to register by email to nbbfirmanalysis.seminar@nbb.be before Thursday 30 March at 3:30pm if you plan to attend the seminar. Without registration, you will not beallowed in the seminar room.

You will receive a nominative badgeat the entrance. We recommend that you arrive at least 10 minutes beforethe start of the seminar. Please include name and car plate number for accessthe NBB Parking Warmoesberg 41.

We would also like to inform you ofthe upcoming firm analysis seminars:

20/4ONLINE Daron Acemoglu (MIT)

25/5Rafael Dix-Carneiro (Duke)

8/6 Francesco Vona (University ofMilan)

28/9 Leonie Wenz (Potsdam Institutefor Climate Impact Research)

Looking forward to seeing you there.

Kind regards,

Gert Bijnens (NBB),Emmanuel Dhyne (NBB-UMons), Catherine Fuss (NBB), Johannes Van Biesebroeck (KULeuven), Joep Konings (KU Leuven), Hylke Vandenbussche (KU Leuven), VincentVandenberghe (UCL), Gonzague Vannoorenberghe (UCL), Bart Cockx (UGent), GlennRayp (UGent), Paola Conconi (ULB), Ilan Tojerow (ULB), Mathieu Parenti (ULB),Glenn Magerman (ULB), Estelle Cantillon (ULB), Alain Finet (UMons), JanBouckaert (UA), Mark Vancauteren (UHasselt), Axel Gautier (ULiège),

to be announced