09:30 - 11:10
Parallel sessions 6
+
09:30 - 11:10
P6-S136
Room: -1.A.01
Chair/s:
Clara Brügge
Discussant/s:
Toni Rodon
Greening in Groups: Firm Concentration and Lobbying on Green Industrial Policy
P6-S136-1
Presented by: Ryan Pike
Ryan Pike
Yale University
Green industrial policy is an increasingly common tool for states seeking to reach mid-century decarbonization targets. Whereas existing explanations of firm climate preferences largely focus on regulation, explanations for assistance lie at the sector level. I argue that a firm’s geographic concentration, by increasing the potential proximate benefits that a firm can accrue following expansions to the green assistance budget, increases the likelihood a firm directly lobbies on green industrial policy. Assistance budget expansions make feasible transformational decarbonization projects, large enough to spillover to multiple firms in a given area, hence those firms that are most concentrated to other firms stand to gain the most. Using French lobbying data, I assess how manufacturing firms responded to the expansion of green assistance as a part of the COVID-19 stimulus policy: France Relance. Using this exogenous funding shock in a difference-in-differences design, I find that more concentrated firms increasingly lobby on green industrial policy. This finding holds when I consider intra-industry heterogeneity in concentration with more concentrated firms increasingly lobbying alone. Interviews, fieldwork and secondary source materials corroborate the focus on geographically proximate benefits in the years since France Relance. These results suggest that firm behavior towards green assistance is structured by a geographic rather than based on sector- or emissions intensity-based cleavages.
Keywords: Green Industrial Policy, Climate Change, Firms, Intra-Industry Cleavage

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