Understanding how firms interpret and respond to carbon price signals based on their strategic priorities is crucial for aligning climate policies with corporate financial and environmental objectives. By examining how carbon price signals can shape firms’ financial–environmental priorities, these findings offer actionable insights for designing policies that better balance profitability and sustainability in the low-carbon transition.
his paper studies the adoption of clean technology in an oligopolistic setting, focusing on carbon capture and storage (CCS) in the cement sector. Firms can choose between two technologies: a carbon- intensive (“dirty”) technology and a low-carbon (“clean”) one.
Globally, the transport sector is the second-largest source of CO2 emissions, with private road transportation accounting for the majority of these emissions. In this study, we use a structural model and a novel dataset of the French new and used car markets to estimate the determinants of private car demand and price sensitivity. Our findings demonstrate that targeting low-income households is effective from both distributive and environmental perspectives.
