Tuesday, March 1st, 2022
12:30-2:00 EST
on Zoom
Paper Abstract: We study a prominent energy regulation affecting large Chinese manufacturers that are part of broader conglomerates. Using detailed firm-level data and difference-in-differences research designs, we show that regulated firms cut output and shifted some production to unregulated firms in the same conglomerate instead of improving their energy efficiency. To account for conglomerate and market spillovers, we interpret these results through the lens of an industry equilibrium model featuring conglomerate production. We quantify that a $160 social cost of carbon rationalizes the policy and that alternative policies that exploit public information on business networks can increase aggregate energy savings by 10%.
About the Speaker:
Daniel Yi Xu is a Professor of Economics at Duke University and Research Associate at the National Bureau of Economic Research. Co-editor of the Review of Economics and Statistics. He is also the associate editor of the Rand Journal of Economics and AEJ: Applied. His research focus tends to focus on Productivity/Innovation, International Trade, and Industrial Organization. His website: https://sites.google.com/site/yixusite/
