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Olivier Wang

@olivierwang.bsky.social

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Macroeconomics and finance at NYU Stern.

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Reposted by Olivier Wang

VoxEU @ CEPR @voxeu.org · 12/02/2025

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.

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Reposted by Olivier Wang

VoxEU @ CEPR @voxeu.org · 12/02/2025

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

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