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Who applies for abatement subsidies? Evidence from Swedish firms

Ferguson, Shon; Nolgren, Johanna

Abstract

We provide new empirical evidence on the underlying factors that explain firms’ participation in a Swedish government program providing grants for emission-reducing investment projects. Using Swedish firm-level register data matched with application data over the years 2016–2020, we estimate the impact of observable firm characteristics as determinants of applying for and obtaining grants. The findings suggest that firms with previous experience from applying and obtaining the grant are more likely to apply, as well as older and larger firms. Our results suggest that larger and more experienced firms are disproportionately represented among applicants and grantees.

Keywords

Climate subsidies; Policy evaluation; Firm participation; Firm characteristics; Self-selection

Published in

Working Paper Series / Swedish University of Agricultural Sciences, Department of Economics
2024, number: 2024:1
Publisher: Department of Economics, Swedish University of Agricultural Sciences