Firm dynamics in response to green subsidies: eJose Miguel Abitovidence from Kyoto Protocol CDMs in Brazil
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2016
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In this paper, we investigate the e ect of subsidies to promote Green Jobs upon rm dy-namics. We do so by focusing on the Clean Development Mechanism (CDM) projects, a feature of the Kyoto Protocol that allowed developed countries to reduce emissions in other countries and buy abatement credits. Our empirical setting is Brazil, one of the largest recipients of CDM projects. We merge a very detailed employer-employee data for the universe of Brazilian formal rms, with information on CDM projects. The richness of the data allow us to follow rms and workers over time and quantify the e ect of the green subsidies related with the Kyoto Protocol.