Table 7 Open in new tab Carbon pricing...

	(1)	(2)	(3)	(4)
Δln(1 - C) $_{(i, t - 1)}$	1.257***	1.062***	1.605**	0.956***
	(0.457)	(0.301)	(0.645)	(0.329)
Δln(1 - C) $_{(i, t - 2)}$	0.565	0.609**	0.793	0.644**
	(0.419)	(0.247)	(0.504)	(0.303)
Δln(1 - C) $_{(i, t - 3)}$	0.764**	0.214	0.950***	–0.057
	(0.332)	(0.170)	(0.308)	(0.193)
$\sum Δ$ ln(1 - C)	2.585***	1.885***	3.348***	1.543***
	(0.009)	(0.000)	(0.008)	(0.007)
Firm fixed effects	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes
Observations	7,228	7,737	5,805	1,932
Within R²	.015	.021	.039	.021

	(1)	(2)	(3)	(4)
Δln(1 - C) $_{(i, t - 1)}$	1.257***	1.062***	1.605**	0.956***
	(0.457)	(0.301)	(0.645)	(0.329)
Δln(1 - C) $_{(i, t - 2)}$	0.565	0.609**	0.793	0.644**
	(0.419)	(0.247)	(0.504)	(0.303)
Δln(1 - C) $_{(i, t - 3)}$	0.764**	0.214	0.950***	–0.057
	(0.332)	(0.170)	(0.308)	(0.193)
$\sum Δ$ ln(1 - C)	2.585***	1.885***	3.348***	1.543***
	(0.009)	(0.000)	(0.008)	(0.007)
Firm fixed effects	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes
Observations	7,228	7,737	5,805	1,932
Within R²	.015	.021	.039	.021

Table 7

Carbon pricing and carbon emission intensity: Carbon leakage

	(1)	(2)	(3)	(4)
	Leakage list		Leakage list Yes
	No	Yes	Trade only	Emission
Δln(1 - C) $_{(i, t - 1)}$	1.257***	1.062***	1.605**	0.956***
	(0.457)	(0.301)	(0.645)	(0.329)
Δln(1 - C) $_{(i, t - 2)}$	0.565	0.609**	0.793	0.644**
	(0.419)	(0.247)	(0.504)	(0.303)
Δln(1 - C) $_{(i, t - 3)}$	0.764**	0.214	0.950***	–0.057
	(0.332)	(0.170)	(0.308)	(0.193)
$\sum Δ$ ln(1 - C)	2.585***	1.885***	3.348***	1.543***
	(0.009)	(0.000)	(0.008)	(0.007)
Firm fixed effects	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes
Observations	7,228	7,737	5,805	1,932
Within R²	.015	.021	.039	.021

	(1)	(2)	(3)	(4)
	Leakage list		Leakage list Yes
	No	Yes	Trade only	Emission
Δln(1 - C) $_{(i, t - 1)}$	1.257***	1.062***	1.605**	0.956***
	(0.457)	(0.301)	(0.645)	(0.329)
Δln(1 - C) $_{(i, t - 2)}$	0.565	0.609**	0.793	0.644**
	(0.419)	(0.247)	(0.504)	(0.303)
Δln(1 - C) $_{(i, t - 3)}$	0.764**	0.214	0.950***	–0.057
	(0.332)	(0.170)	(0.308)	(0.193)
$\sum Δ$ ln(1 - C)	2.585***	1.885***	3.348***	1.543***
	(0.009)	(0.000)	(0.008)	(0.007)
Firm fixed effects	Yes	Yes	Yes	Yes
Year fixed effects	Yes	Yes	Yes	Yes
Observations	7,228	7,737	5,805	1,932
Within R²	.015	.021	.039	.021

This table reports OLS estimates of Equation (1). $Δ l n {(E / Y)}_{i, t}$ is the dependent variable. E is firm-level CO₂ emissions in kilograms (kg) and Y is firm-level, PPI-adjusted sales in Swedish krona (SEK). The sample comprises manufacturing firms in Sweden with both CO₂ emissions and sales data and with at least four consecutive observations over 1990–2015. All regressions include firm and year fixed effects. C is the emissions cost share relative to sales for firm i in year t. The standard errors are clustered at the firm level. $\sum Δ$ ln(1 - C) present an F-test of joint significance.

$p <$ .1;

$p <$ .05;

***

$p <$ .01.

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