I am an applied microeconomist working primarily on environmental issues, with a focus on firms and the environment. My recent work shows how changes at the firm in response to environmental policy contribute to a cleaner economy, and how environmental policy affects a firm’s decision to participate in foreign markets.
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Cherniwchan, J.; Najjar, N., 2022, "Do Environmental Regulations Affect the Decision to Export?", American Economic Journal-Economic Policy, May 14(2): 125 - 160.
Abstract: This paper investigates how a common form of environmental regulation—air quality standards—affect exporters. We develop a simple theoretical model to show how the design of these standards causes: (i) some firms to stop exporting, and (ii) a reduction in the export volumes of affected continuing exporters. We exploit quasi-experimental variation resulting from the design of Canadian air quality standards to test these predictions empirically. Our estimates confirm our model's predictions: we find that for the most affected manufacturers, regulation reduced export volumes by 32% and increased the likelihood plants stop exporting by 5 percentage points.
Link(s) to publication:
https://www.aeaweb.org/articles?id=10.1257/pol.20200290&&from=f
http://dx.doi.org/10.1257/pol.20200290
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Najjar, N.; Cherniwchan, J., 2021, "Environmental Regulations and the Clean-Up of Manufacturing: Plant-Level Evidence", The Review of Economics and Statistics, July 103(3): 476 - 491.
Abstract: For much of the industrialized world, pollution from manufacturing has been falling despite increased output. We examine how air quality standards—a common environmental regulation—have contributed to this "clean-up" of manufacturing. We develop a general equilibrium model to show how air quality standards can lead to a clean-up by causing: (i) reductions in plant emission intensity, (ii) relative changes in plant output, and (iii) plant entry and exit. We provide quasi-experimental evidence from Canada to highlight the magnitude of these responses. Our results suggest that air quality standards explain just under 40% of the clean-up of manufacturing.
Link(s) to publication:
http://dx.doi.org/10.1162/rest_a_00904
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McAusland, C.; Najjar, N., 2015, "Carbon Footprint Taxes", Environmental and Resource Economics, May 61(1): 37 - 70.
Abstract: We analyze whether a carbon consumption tax is logistically feasible. We consider a carbon footprint tax (CFT), which would be modeled after a credit-method value added tax. The basis for the tax would be a product’s carbon footprint, which includes all of the emissions released during production of the good and its inputs as well as any greenhouse gases latent in the product. Our analysis suggests that a pure CFT, requiring the calculation of the carbon footprint of every individual product, may be prohibitively costly. However a hybrid CFT seems economically feasible. The hybrid CFT would give firms the option to either calculate the carbon footprint of their outputs—and have their products taxed based on those footprints—or use product-class specific default carbon footprints as the tax basis, thereby saving on calculation costs. Because the CFT would be levied on all goods consumed domestically, the CFT would keep domestic firms on an even footing with those producing in countries without active climate policy, protecting competitiveness and reducing leakage.
Link(s) to publication:
https://link.springer.com/article/10.1007/s10640-013-9749-5
http://dx.doi.org/10.1007/s10640-013-9749-5
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Najjar, N.; McAusland, C., 2015, "The WTO Consistency of Carbon Footprint Taxes", Georgetown Journal of International Law, March 46(3): 765 - 765.
Abstract: Absent meaningful multilateral action on greenhouse gas emissions, countries wishing to combat climate change must decide whether to take or continue unilateral action. A significant obstacle facing many governments is how to maintain the competitiveness of domestic industries and minimize the leakage of carbon emissions through international trade without violating trade rules. One way to assuage these competitiveness and leakage concerns is to implement destination-based carbon pricing--carbon policy levied at the point of consumption, rather than production. This Article addresses whether one such form of climate policy--a consumption tax levied on the carbon footprint of goods consumed domestically--would be consistent with World Trade Organization (WTO) rules. Because a carbon footprint tax (CFT) would be levied at the point of consumption, goods would be treated equally regardless of whether they are imported or produced domestically. This Article analyzes the legal precedents for a footprint tax and identifies grounds upon which a CFT might possibly be challenged. Our assessment is that the most convincing challenge would be through the likeness criterion. Although the CFT would be a single-rate tax, the effective tax per-unit will vary across goods according to their carbon footprint. As a result, goods that are identical but for differences in their embodied emissions will face different tax burdens; if goods with different embodied carbon are deemed like goods, any variation in the per-unit tax could be interpreted as violating National Treatment. Recent precedents for treating goods as distinct because of consumer tastes and production externalities suggest that high- and low-carbon goods may not be deemed like in the event of a challenge. Nevertheless, we also outline an alternate policy--one which pairs a uniform tax on goods with a consumption subsidy for low-carbon goods--that may survive challenge even if low- and high-carbon goods are deemed like. With the possible exception of likeness, we feel there is sufficient precedent for a footprint tax.
Link(s) to publication:
https://go.gale.com/ps/i.do?p=LT&u=lond95336&id=GALE%7CA421324462&v=2.1&it=r
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