Seminario Bologna Environmental Economics Group

1)
Speaker: Laura Egelmeers (Utrecht University)
Title: Firm-level production networks and carbon pricing
Abstract: 

Climate policies are implemented in economies with a large heterogeneity across firms. Firms differ substantially in energy and CO₂ productivity, leading to uneven exposure to carbon pricing. Beyond its direct exposure to climate policy through use of energy inputs, firms may be exposed through their production networks. Production network data allows us to quantify such indirect exposure to carbon pricing. We estimate firms’ exposure to an EU ETS price increase within the Dutch production network, combining unique microdata: (i) firm-level production network data with detailed product-level transactions aligned with national input–output tables; (ii) Production Statistics on value added, employment, and energy costs; and (iii) CO₂ emissions and energy use data, including matched EU ETS registry information. We integrate a theoretical model of firm-level production networks with these data to quantify direct exposure (own emissions) and indirect exposure (through suppliers and customers). This approach identifies the firms most exposed to carbon pricing and their characteristics (e.g., sector and position in value chain), and quantifies the role of the production network in exposure, offering new insights into how carbon costs propagate across an interconnected economy. We find that network effects are substantial and vary markedly across firms within sectors: the dispersion in relative output changes is especially pronounced in the chemicals, refined petroleum, and electricity sectors.

2)
Speaker: Andrea Titton (University of Bologna)
Title: Time Inconsistency and Reputation of Climate Policy
Abstract: Climate policy is inherently time-inconsistent: once firms undertake costly and irreversible abatement investments, policymakers have incentives to deviate from announced carbon taxes. Anticipating this, firms form beliefs about policy commitment, which we interpret as the reputation of climate policy. This paper studies how this reputation shapes investment, emissions, and policy dynamics.