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concerning the impact of stringent environmental policy on firms' competitiveness and profitability. From the traditional ‘static … firms in terms of enhanced profitability and competitiveness. Based on Sweden's manufacturing industry, our main purpose is … to specifically assess the impact of the CO2 tax scheme of Sweden on firms' profit efficiency. The empirical methodology …
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We shed new light on the macroeconomic effects of rising temperatures. In the data, a shock to global temperature dampens expenditures in research and development (R&D). We rationalize this empirical evidence within a stochastic endogenous growth model, featuring temperature risk and growth...
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