This article analyzes plant-level panel data from Chile and Colombia to assess how manufacturers might respond to carbon taxes and other policies that induce substitution between clean and dirty fuels. Is producer flexibility linked with sector of activity, capital vintage, or rates of new capital formation? When adjustments in energy use occur, are they accomplished through changes in factor proportions for individual producers, changes in the output shares of producers within an industry, or changes in the relative production levels of different manufacturing industries? Patterns of energy use within and between industries show that fiscal policies can significantly inj7uence the level and mixture of energy use among manufacturers.
|Original language||English (US)|
|Title of host publication||Environmental Taxation in Practice|
|Publisher||Taylor and Francis|
|Number of pages||26|
|State||Published - May 15 2017|
All Science Journal Classification (ASJC) codes
- Social Sciences(all)