No. 83: Who bears the emission tax burden? Evidence from capital investments

Jahr: 2022

Typ: Working Paper

Abstract

This paper examines who bears the economic burden of environmental taxes by studying investment responses. Using private firms from Spain and the introduction of an emission tax in 2013 in the Autonomous Community Valenciana, we show that the investment response does not depend on the level of pollution but on economic factors. Investments of firms operating in highly competitive markets, firms with low pricing power, and firms with low financial flexibility are the most affected by environmental taxes. In addition, we find that employees bear part of the emission tax burden. Overall, our results indicate that emission taxes affect not only the polluters but also other firms and stakeholders.

Veröffentlichungsinformationen

TRR 266 researchers

Martin Jacob IESE Business School

DOI

DOI Link

To cite this article

Jacob, M., & Zerwer, K. (2022). Environmental taxes and corporate investment. TRR 266 Accounting for Transparency Working Paper Series No. 83. https://dx.doi.org/10.2139/ssrn.4094069

Zugehörige Projekte

B01

Investment Effects of Multidimensional Taxation

+ 5

Beteiligte Institutionen

Die Hauptstandorte vom TRR 266 sind die Universität Paderborn (Sprecherhochschule), die HU Berlin und die Universität Mannheim. Alle drei Standorte sind seit vielen Jahren Zentren für Rechnungswesen- und Steuerforschung. Hinzu kommen Wissenschaftler der LMU München, der Frankfurt School of Finance and Management, der Goethe-Universität Frankfurt, der Universität zu Köln und der Leibniz Universität Hannover, die die gleiche Forschungsagenda verfolgen.