Daniel Xi Yu from Duke University will present his paper entitled "Regulating Conglomerates: Evidence from an Energy Conservation Program in China" on Wednesday, 25th of May. The seminar will take place between 15:30 and 16:45 can be joined through the following link:
Title and abstract of the paper:
Regulating Conglomerates: Evidence from an Energy Conservation Program in China
We study a prominent energy regulation affecting large Chinese manufacturers that arepart of broader conglomerates. Using detailed firm-level data and difference-in-differencesresearch designs, we show that regulated firms cut output and shifted some production tounregulated firms in the same conglomerate instead of improving their energy efficiency. Toaccount for conglomerate and market spillovers, we interpret these results through the lensof an industry equilibrium model featuring conglomerate production. We quantify that a$160 social cost of carbon rationalizes the policy and that alternative policies that exploit public information on business networks can increase aggregate energy savings by 10%.