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- W3124839781 abstract "On June 1, 2017, President Trump announced the United States'withdrawal from the Paris agreement on climate change. Despite this decision, American firms continued investing in low-carbon technologies and some states committed to tougher environmental standards. To understand this apparent paradox, this paper studies how a weakening of environmental standards affects the behavior of profit-maximizing firms. It finds that a relaxation of emission standards (i) may increase firms'incentives to adopt clean technologies, but not to pollute less; (ii) may negatively affect industry profitability if it is perceived as temporary; and, when this is the case, (iii) the unilateral adoption of stricter standards by large states may increase the expected profitability of every firm." @default.
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- W3124839781 date "2019-01-01" @default.
- W3124839781 modified "2023-10-02" @default.
- W3124839781 title "Firms'and States'Responses to Laxer Environmental Standards" @default.
- W3124839781 hasPublicationYear "2019" @default.
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