Ferguson, Shon
- Department of Economics, Swedish University of Agricultural Sciences
Report2024Open access
Ferguson, Shon; Nolgren, Johanna
This paper provides new empirical evidence on the firm-level economic impacts of a Swedish grant program that subsidizes firms’ investments in greenhouse gas emissionsreducing projects. We exploit a discontinuity in the assignment mechanism in the program to estimate causal effects of investment subsidies on investment additionality and firm growth. Combining highly-detailed data on the details of each application with detailed firm-level balance sheet data on investment and other aspects of firm performance provides a range of new results. Our estimates suggest that the grant scheme led to increases in investment, turnover and the number of employees. The results indicate a substantial crowding-in effect on investment.
abatement; additionality; investment grants; subsidies; climate policy
Working Paper Series / Swedish University of Agricultural Sciences, Department of Economics
2024, number: 2024:02Publisher: Department of Economics, Swedish University of Agricultural Sciences
Economics
https://res.slu.se/id/publ/131720