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IRES Lunch Seminar - François Fontaine

ires
Louvain-la-Neuve
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François Fontaine

(PSE)

will give a presentation on 

The Impact of a Carbon Tax on Labor Reallocation. The Role of Firm Heterogeneity and Energy Efficiency 

Abstract

This study leverages French data to elucidate the considerable heterogeneity in energy efficiency across firms and its correlation with the substantial diversity in energy mixes both within and across sectors. We establish that there is a positive correlation at the firm level between the value-added per unit of labor and per unit of energy, which in turn fosters a direct positive relationship between firm's hiring rate and its energy value-added productivity. Building upon these empirical findings, we develop a structural search and matching model featuring large firms, each characterized by distinct labor and energy productivity levels, as well as varied energy mix. Utilizing this model, we analyze the impact of an increase in carbon taxation on the dynamic reallocation of labor.

 (with Carole Marullaz and Katheline Schubert)

Personal webpage of the speaker

  • Tuesday, 11 February 2025, 12h45
    Tuesday, 11 February 2025, 13h45
  • Silvia Peracchi