Seminari
9 marzo 2017
FEEM Research Seminar on "The Impact of Energy Prices on Employment, Competitiveness and Environmental Performance: Evidence for France Manufacturing Establishments"
Dove: Venice
Sede:
Fondazione Eni Enrico Mattei
Isola di S. Giorgio Maggiore, 8
30124 Venice
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Video-conference at FEEM Milan
Come raggiungere: Mappa di Google
Orario dell'evento: h. 12.30 Seminar
In Venice a light lunch will follow the seminar for registered participants.
In Venice a light lunch will follow the seminar for registered participants.
Informazione:
Registration is required. Please confirm your participation here.
The seminar will be broadcasted via GoToMeeting.
Seminars Office, seminars@feem.it
Registration is required. Please confirm your participation here.
The seminar will be broadcasted via GoToMeeting.
Seminars Office, seminars@feem.it
Speakers:
Francesco Vona, OFCE Sciences-Po (French Economic Observatory of SciencesPo)
Abstract
The paper is co-authored by Francesco Vona and Giovanni Marin.
The seminar is based on a paper that evaluates the historical influence of energy prices on a series of measures of environmental and economic performance for a panel of French manufacturing establishments during the period 1997-2010. The focus on energy prices is motivated by two facts: i) energy prices are expected to increase reflecting carbon pricing policies required to comply with the Paris agreement; ii) the effects of past environmental policies have been dominated by substantial reductions in quantity-discounts for large consumers, making exceedingly difficult to evaluate each policy in isolation. For identification of the price effects, we construct a shift-share instrument that only captures the exogenous variation of establishment-specific energy prices. Our results highlight a trade-off between environmental and economic goals: while a 10% increase in energy prices brings to a 6% reduction in energy consumption and to a 11% reduction in CO2 emissions, it also has a small negative impact on employment (-2.6%), wages (-0.4%) and firm's productivity (-1%). The negative employment effects are highly heterogeneous across sectors, being, as expected, mostly concentrated in energy-intensive and trade-exposed sectors. Finally, the employment effects are mitigated in multi-plant firms by labor reallocation across establishments.
The seminar is based on a paper that evaluates the historical influence of energy prices on a series of measures of environmental and economic performance for a panel of French manufacturing establishments during the period 1997-2010. The focus on energy prices is motivated by two facts: i) energy prices are expected to increase reflecting carbon pricing policies required to comply with the Paris agreement; ii) the effects of past environmental policies have been dominated by substantial reductions in quantity-discounts for large consumers, making exceedingly difficult to evaluate each policy in isolation. For identification of the price effects, we construct a shift-share instrument that only captures the exogenous variation of establishment-specific energy prices. Our results highlight a trade-off between environmental and economic goals: while a 10% increase in energy prices brings to a 6% reduction in energy consumption and to a 11% reduction in CO2 emissions, it also has a small negative impact on employment (-2.6%), wages (-0.4%) and firm's productivity (-1%). The negative employment effects are highly heterogeneous across sectors, being, as expected, mostly concentrated in energy-intensive and trade-exposed sectors. Finally, the employment effects are mitigated in multi-plant firms by labor reallocation across establishments.
