Plausibly Exogenous [887] - Carbon Pricing (06/24/2022)
LHS Variable
Bank credit to firms with greenhouse gas emissions
RHS Variable
Carbon pricing policy
Source of Exogenous Variation
Geographic restrictions inherent in the California cap-and-trade bill and a discontinuity in the embedded free-permit threshold of the federal Waxman-Markey cap-and-trade bill
- Ivanov, Kruttli, and Watugala (2021), “Banking on Carbon: Corporate Lending and Cap-and-Trade Policy”