The document discusses the relationship between environmental policies and economic outcomes, highlighting that while stringent policies have significant effects, their impact is generally small, creating winners and losers among firms. It emphasizes the need for effective policy designs to support losers and transform them into winners. Various data sources and methodologies are mentioned to analyze the effects of these policies on investment and productivity growth across industries.

1. Tomasz Kozluk, OECD
Global Forum on Environment (and Growth)
25th October 2016
Environmental policies and
economic outcomes:
what can we learn from
firms and industries?

2. • Measuring policies
– Stringency (EPS)
– Burdens to entry and competition (BEEP)
• Measuring economic effects
– Stringent policies have effects,
– Effects are significant, but small,
– Winners and losers.
• How can we design policy packages to:
– Reallocate from losers to winners?
– Turn losers into winners?
OECD: Environmental policies and their
economic effects

3. - Financial statements of publicly traded
companies,
- Business registries, tax registries, trade
inventories
- Dedicated surveys (e.g. manufacturing,
investment, innovation),
- Other sources, “privately” collected (eg
ORBIS, Patstat, GIS, GPS),
- Pollution Release Inventories (PRTRs, EU ETS
sub.),
- Field trials & related data
- Voluntary disclosure
Firm (& plant) data – what can we work
with? Some examples
Counterfactuals:
who they cover, who
they don’t cover?
Availability/
existence (eg over
time)
Do they cover what
we are interested
in?
Representativeness/
sampling
Confidentiality
Strategic responses/
lack of response,
credibility &
reliability
Comparability (eg
across countries)

4. Environmental policies, energy prices
and investment – not an obvious win-win
Preliminary
results
Source: Dlugosch and Kozluk , (2016 forthcoming), Energy prices,
environmental policies and investment – evidence from listed firms

5. Other things are more important for
outward FDI than environemtal policies
Preliminary
results
Source: Garsous and Kozluk , (2016 forthcoming), FDI and the Pollution
Haven Hypothesis.

6. Across industries: a (small) pollution
haven effect…
Source: Kozluk and Timiliotis, (2016), Do environmental policies affect
global value chains? A new perspective on the pollution haven hypothesis.
6

7. More stringent environmental policies:
winners and losers
Source: Kozluk and Timiliotis, (2016), Do environmental policies affect
global value chains? A new perspective on the pollution haven hypothesis.
7

8. Productivity growth. Across firms:
advanced firms gain – laggards lose
Source: Albrizio et al. (2014), Do environmental policies matter for
productivity growth? Insights from new measures of environmental policies
8

9. Unintended(?) consequences of vintage
differentiated air pollution policies
Predictedlifeofacoal-firedpowerplant
Percentiles of degree of VDR (distribution across
countries)
0=equal norms for incumbents and new entrants
100=most differentiated
Preliminary
results

10. Tomasz.Kozluk@oecd.org
http://oe.cd/eps
Thank you!