Rebecca De Simone, S. Lakshmi Naaraayanan, Kunal Sachdeva
Working paper, 2026
Firms reduce pollution through strategic production choices: sourcing electricity externally and shifting toward higher-margin products. However, aggregate effects include reduced product variety and decreased business formation.
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@techreport{desimone2026brown,
title={Opening the Brown Box: Production Responses to Environmental Regulation},
author={De Simone, Rebecca and Naaraayanan, S. Lakshmi and Sachdeva, Kunal},
year={2026},
type={SSRN Working Paper},
institution={Social Science Research Network},
number={4707581},
doi={10.2139/ssrn.4707581}
}