Carbon pricing and distributional effects on firms: a methodological survey

An evaluation of the distributional impact of environmental policies appears vital, not just from a fair distribution standpoint, but also so as to consider the political feasibility of climate policy. In this paper we focus on the side of the firm, considering the modelling tools available for an empirical estimation of the distributional impact of carbon pricing policy. After a brief discussion of the main economic instruments and carbon pricing policies we focus on clarifying the impact on firms in terms of profits and competitiveness.