Cover Image
Read Now

Environmental policy stringency and CO2 emissions Evidence from cross-country sector-level data

This paper provides empirical evidence on the short and long-term sectoral effect of environmental policy stringency on CO2 emissions, exploiting longitudinal data covering 30 OECD countries and more than 50 sectors. The analysis relies on the OECD Environmental Policy Stringency (EPS) index, a comp...

Full description

Bibliographic Details
Main Author: Frohm, Erik
Other Authors: D'Arcangelo, Filippo Maria, Kruse, Tobias, Pisu, Mauro
Format: eBook
Language:English
Published: Paris OECD Publishing 2023
Series:OECD Economics Department Working Papers
Subjects:
Economics
Environment
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
LEADER 02286nma a2200289 u 4500
001 EB002202841
003 EBX01000000000000001340044
005 00000000000000.0
007 cr|||||||||||||||||||||
008 240412 ||| eng
100 1 |a Frohm, Erik 
245 0 0 |a Environmental policy stringency and CO2 emissions  |h Elektronische Ressource  |b Evidence from cross-country sector-level data  |c Erik, Frohm ... [et al] 
260 |a Paris  |b OECD Publishing  |c 2023 
300 |a 36 p.  |c 21 x 28cm 
653 |a Economics 
653 |a Environment 
700 1 |a D'Arcangelo, Filippo Maria 
700 1 |a Kruse, Tobias 
700 1 |a Pisu, Mauro 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OECD  |a OECD Books and Papers 
490 0 |a OECD Economics Department Working Papers 
024 8 |a /10.1787/53ddcef7-en 
856 4 0 |a oecd-ilibrary.org  |u https://doi.org/10.1787/53ddcef7-en  |x Verlag  |3 Volltext 
082 0 |a 363 
082 0 |a 330 
520 |a This paper provides empirical evidence on the short and long-term sectoral effect of environmental policy stringency on CO2 emissions, exploiting longitudinal data covering 30 OECD countries and more than 50 sectors. The analysis relies on the OECD Environmental Policy Stringency (EPS) index, a composite index tracking climate change and air pollution mitigation policies. Estimates obtained from panel regressions suggest that more stringent environmental policies are associated with lower emissions, that the effect builds over time and differs across sectors depending on their fossil fuel intensity. A one unit increase in the EPS index (about one standard deviation), is associated with 4% lower CO2 emissions in the sector with median fossil fuel intensity after two years and by 12% after 10 years. For sectors in the top decile of the fossil fuel intensity distribution, the estimates point to a decline in emissions by 11% after two years and 19% after ten years. Environmental policies targeted at energy, manufacturing and transport sectors have the largest potential impact on emissions. Illustrative policy scenarios based on these results indicate that achieving emission reductions consistent with net-zero targets will require raising the stringency of environmental policies more drastically and rapidly than in the past 

Similar Items