Olivier Wang
LightNews LightNews
olivierwang.bsky.social
Olivier Wang
@olivierwang.bsky.social
2.1K followers 27 following 0 posts
Macroeconomics and finance at NYU Stern.
Posts Replies Media Videos
Reposted by Olivier Wang
voxeu.org
Large firms can and should use #climate commitments to accelerate the green transition when government climate policies are constrained. Private commitments resolve policy gaps & make government commitments more credible.
V Acharya, R Engle, @olivierwang.bsky.social
cepr.org/voxeu/column...
#EconSky
Graph showing that an increasing number of firms, especially large firms, have made net-zero climate commitments. Since 2016, there has been a surge of commitments for net zero emissions by large firms. This column analyses whether these corporate commitments can have a real impact on decarbonisation. It shows that large firms can and should use climate commitments to accelerate the green transition when government climate policies are constrained. Private initiatives work best in countries with more constraints on innovation subsidies than on carbon pricing, because firms’ incentives to reduce their carbon tax bill is stronger. Finally, private commitments not only resolve policy gaps but also make government commitments more credible by resolving time-inconsistency problems.
February 12, 2025 at 9:46 AM