https://macropaperwarehouse.com/authors/luigi-iovino/Luigi IovinoHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/the-environmental-bias-of-corporate-income-taxation/https://macropaperwarehouse.com/papers/the-environmental-bias-of-corporate-income-taxation/<p>This paper documents and quantifies an &ldquo;environmental bias&rdquo; embedded in the U.S. corporate income tax code: CO2-intensive (&ldquo;dirty&rdquo;) firms systematically face lower effective tax rates than clean firms, constituting an implicit subsidy on pollution. The authors — Iovino, Martin, and Sauvagnat — establish this cross-sectional fact, trace it to a specific mechanism, provide causal evidence using the 2017 Tax Cuts and Jobs Act (TCJA), and quantify aggregate emissions implications using a calibrated multi-sector general-equilibrium model.</p>