Study Assesses Effects of Climate Policy Costs on German Manufacturers
A study by the EPoS – Economic Research Centre, a Collaborative Research Center at the Universities of Mannheim and Bonn, examines how the costs of EU climate policy affect German manufacturers. The researchers analysed data from around 75,000 to 90,000 production sites covering the period from 2000 to 2019. They found that compliance costs had little measurable impact on employment and wages at regulated manufacturers. Importantly, regarding the impact of free permit allocations, they find that recipient establishments were only half as likely to cease operation compared to unregulated firms.
One of the authors is Kathrine von Graevenitz, Ph.D., Professor of Environmental Economics at the University of Mannheim and at the ZEW – Centre for European Economic Research, as well as a researcher at the EPoS Economic Research Centre.
The results of the study were published in a discussion paper.