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Project Description

Summary:  View help for Summary This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire US manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly defined industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments.

Scope of Project

Subject Terms:  View help for Subject Terms [Productivity, Energy, Environmental policy, Firm heterogeneity]
JEL Classification:  View help for JEL Classification
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      L60 Industry Studies: Manufacturing: General
      Q52 Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
      Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q58 Environmental Economics: Government Policy
Geographic Coverage:  View help for Geographic Coverage United States
Universe:  View help for Universe Manufacturing plants in the US
Data Type(s):  View help for Data Type(s) [survey data, administrative records data, census/enumeration data]

Methodology

Data Source:  View help for Data Source US Census Bureau: Census of Manufacturers and Manufacturing Energy Consumption Survey
Unit(s) of Observation:  View help for Unit(s) of Observation Establishment,

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