Publication:
Firms' and States' Responses to Laxer Environmental Standards

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dc.contributor.authorCordella, Tito
dc.contributor.authorDevarajan, Shantayanan
dc.date.accessioned2019-03-14T21:23:20Z
dc.date.available2019-03-14T21:23:20Z
dc.date.issued2019-03
dc.description.abstractOn June 1, 2017, President Trump announced the United States' withdrawal from the Paris agreement on climate change. Despite this decision, American firms continued investing in low-carbon technologies and some states committed to tougher environmental standards. To understand this apparent paradox, this paper studies how a weakening of environmental standards affects the behavior of profit-maximizing firms. It finds that a relaxation of emission standards (i) may increase firms' incentives to adopt clean technologies, but not to pollute less; (ii) may negatively affect industry profitability if it is perceived as temporary; and, when this is the case, (iii) the unilateral adoption of stricter standards by large states may increase the expected profitability of every firm.en
dc.identifierhttp://documents.worldbank.org/curated/en/156271552566218095/Firms-and-States-Responses-to-Laxer-Environmental-Standards
dc.identifier.doi10.1596/1813-9450-8781
dc.identifier.urihttps://hdl.handle.net/10986/31407
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8781
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectENVIRONMENTAL POLICY
dc.subjectTECHNOLOGY ADOPTION
dc.subjectPARIS AGREEMENT
dc.subjectSUBNATIONAL REGULATION
dc.subjectPOLICY REVERSAL
dc.subjectCLIMATE CHANGE POLICY
dc.subjectEMISSION STANDARDS
dc.subjectCLEAN TECHNOLOGY
dc.titleFirms' and States' Responses to Laxer Environmental Standardsen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleFirms' and States' Responses to Laxer Environmental Standards
okr.date.disclosure2019-03-14
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/156271552566218095/Firms-and-States-Responses-to-Laxer-Environmental-Standards
okr.guid156271552566218095
okr.identifier.doi10.1596/1813-9450-8781
okr.identifier.externaldocumentum090224b086a76e07_1_0
okr.identifier.internaldocumentum30903508
okr.identifier.reportWPS8781
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/156271552566218095/pdf/WPS8781.pdfen
okr.statistics.combined1912
okr.statistics.dr156271552566218095
okr.statistics.drstats630
okr.topicEnvironment::Environmental Economics & Policies
okr.topicGovernance::Local Government
okr.topicPrivate Sector Development::Private Sector Economics
okr.unitDevelopment Economics Vice Presidency
relation.isAuthorOfPublicationddcdf87a-9a86-50e0-b365-0d2c747a0607
relation.isAuthorOfPublication.latestForDiscoveryddcdf87a-9a86-50e0-b365-0d2c747a0607
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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