add 28

28/paper.pdf

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28/replication_package/0_data/1_Raw files/abiad.dta

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28/replication_package/0_data/1_Raw files/bekaert.dta

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28/replication_package/0_data/1_Raw files/braun.dta

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28/replication_package/0_data/1_Raw files/business credit.dta

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28/replication_package/0_data/1_Raw files/compustat.dta

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28/replication_package/0_data/1_Raw files/epa.dta

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28/replication_package/0_data/1_Raw files/ets.dta

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28/replication_package/0_data/1_Raw files/evca.dta

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+size 58059

28/replication_package/0_data/1_Raw files/exio.dta

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28/replication_package/0_data/1_Raw files/financial structure.dta

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+size 140301

28/replication_package/0_data/1_Raw files/fuel subsidies.dta

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28/replication_package/0_data/1_Raw files/iea country.dta

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28/replication_package/0_data/1_Raw files/iea policies.dta

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28/replication_package/0_data/1_Raw files/iea.dta

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28/replication_package/0_data/1_Raw files/laeven.dta

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28/replication_package/0_data/1_Raw files/levinson.dta

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28/replication_package/0_data/1_Raw files/orbis_anon.dta

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28/replication_package/0_data/1_Raw files/patstat.dta

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28/replication_package/0_data/1_Raw files/quinn.dta

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28/replication_package/0_data/1_Raw files/stan.dta

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28/replication_package/0_data/1_Raw files/unido.dta

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28/replication_package/0_data/1_Raw files/wdi.dta

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28/replication_package/0_data/1_Raw files/wiod.dta

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28/replication_package/1_code/0 Settings.do

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+
+	cls
+	clear all
+	set maxvar 10000
+	set more off 
+
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+	* INPUT PATH WHERE REPLICATION FILES ARE SAVED
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+	gl root "~\DeHaas_Popov_Submission_package" // INSERT PATH WHERE REPLICATION PACKAGE IS SAVED	
+
+	gl data				"$root\3_ReplicationFiles\0_data"
+	
+	gl do    			"$root\3_ReplicationFiles\1_code"
+	gl figures			"$root\3_ReplicationFiles\2_figures"
+	gl tables			"$root\3_ReplicationFiles\3_tables"
+	gl logs   			"$root\3_ReplicationFiles\4_logs"
+
+	cd "$root"
+	
+	
+	
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+	* INSTALL PACKAGES
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+	
+	ssc install ivreg2, replace
+	ssc install psmatch2, replace
+	ssc install sumup, replace
+	ssc install texsave, replace
+	ssc install univar, replace
+	ssc install regsave, replace
+	ssc install outreg2
+
+	
+	
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+	* Run analysis do files
+	*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+	do "${do}\1 Data merging.do"
+	do "${do}\2 Tables.do"
+	do "${do}\3 Charts.do"
+	do "${do}\4 Tables Appendix.do"
+	do "${do}\5 Tables Online Appendix.do"
+	do "${do}\6 Charts Online Appendix.do"
+
+	

28/replication_package/1_code/1 Data merging.do

@@ -0,0 +1,506 @@
+ log using "${logs}\1 Data merging.txt", replace 
+	
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	
+* COUNTRY*SECTOR DATA CLEANING: Merge datasets
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+
+*1:1 matching based on country*year*industry identifier
+
+use "$data\1_Raw files\iea.dta", clear
+
+local dataset_list1 `" "exio.dta" "' 
+
+foreach  filename of local dataset_list1 {
+local temp_path1 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge 1:1 iso2 industry year using "`temp_path1'"
+	drop _merge
+}
+
+local dataset_list2 `" "wiod.dta" "unido.dta" "stan.dta" "'
+
+foreach filename of local dataset_list2 {
+local temp_path2 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge 1:1 code industry year using "`temp_path2'"
+	drop _merge
+}
+
+local dataset_list3 `"  "patstat.dta" "'
+
+foreach filename of local dataset_list3 {
+local temp_path3 = "$data\1_Raw files\" + "\" + "`filename'" 
+	merge 1:1 code industry year using "`temp_path3'"
+	drop _merge
+}
+
+
+*m:1 matching based on country*year identifier
+
+local dataset_list4 `" "wdi.dta" "financial structure.dta" "business credit.dta" "ets.dta" "quinn.dta" "bekaert.dta" "iea policies.dta"   "'
+
+foreach filename of local dataset_list4 {
+local temp_path4 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 code year using "`temp_path4'"
+	drop _merge
+}
+
+local dataset_list5 `" "evca.dta" "abiad.dta" "'
+
+foreach filename of local dataset_list5 {
+local temp_path5 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 country year using "`temp_path5'"
+	drop _merge
+}
+
+*m:1 matching based on country*industry identifier
+
+local dataset_list6 `" "fuel subsidies.dta" "'
+
+foreach filename of local dataset_list6 {
+local temp_path6 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 code industry using "`temp_path6'"
+	drop _merge
+}
+
+*m:1 matching based on industry identifier
+
+local dataset_list7 `" "levinson.dta" "epa.dta" "compustat.dta" "laeven.dta" "braun.dta" "'
+
+foreach filename of local dataset_list7 {
+local temp_path7 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 industry using "`temp_path7'"
+	drop _merge
+}
+
+drop if industry==.
+drop if country=="Russian Federation"
+
+save "$data\2_Interim files\country_sector_cleaned.dta", replace
+
+
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	
+* COUNTRY DATA CLEANING: Merge datasets
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+
+use "$data\1_Raw files\iea country.dta", clear
+
+*1:1 matching based on country*year identifier
+
+local dataset_list3 `" "wdi.dta" "financial structure.dta" "business credit.dta" "ets.dta" "quinn.dta" "bekaert.dta" "iea policies.dta" "'
+
+foreach filename of local dataset_list3 {
+local temp_path3 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 code year using "`temp_path3'"
+	drop _merge
+}
+
+local dataset_list4 `" "evca.dta" "abiad.dta" "'
+
+foreach filename of local dataset_list4 {
+local temp_path4 = "$data\1_Raw files" + "\" + "`filename'" 
+	merge m:1 country year using "`temp_path4'"
+	drop _merge
+}
+
+replace country="Macedonia, FYR" if country=="North Macedonia"
+drop if country=="Russian Federation"
+
+replace country = "China" if country=="China (People's Republic of)"
+
+save "$data\2_Interim files\country_cleaned.dta", replace
+
+
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	
+* COUNTRY*SECTOR DATA CLEANING: Create variables, re-label
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+*main financial variables
+
+*producing compound variables
+
+gen fin_dev1=credit+stock
+gen fin_str2=stock/fin_dev1
+gen fin_dev1_b=credit+stock+prbond
+gen fin_str2_c=stock/(credit+stock+prbond)
+
+*producing lags of variables
+
+egen panel_var = group(country industry)
+sort code year industry
+xtset panel_var year
+
+gen credit_l1=L1.credit
+gen stock_l1=L1.stock
+gen bonds_l1=L1.prbond
+gen fin_dev1_l1=L1.fin_dev1
+gen fin_str2_l1=L1.fin_str2
+gen fin_dev1_b_l1=L1.fin_dev1_b
+gen fin_str2_c_l1=L1.fin_str2_c
+gen dom_st_lawpol_l1=L1.dom_st_lawpol
+	 
+*produce labels
+label var credit "Credit to the private sector/GDP"
+label var stock "Stock market capitalization/GDP"
+label var prbond "Value of private bonds/GDP"
+label var fin_dev1 "(Credit to the private + stock market capitalization)/GDP"
+label var fin_str2 "Stock market capit./(credit to the private sector+stock market capit.)"
+label var fin_dev1_b "(Credit to the private sector+stock market capit.+value of private bonds)/GDP"
+label var fin_str2_c "Stock market capit./(credit to the private+stock market capit.+private bonds)"
+
+label var credit_l1 "Credit to the private sector/GDP, 1 lag"
+label var stock_l1 "Stock market capitalization/GDP, 1 lag"
+label var bonds_l1 "Value of private bonds/GDP, 1 lag"
+label var fin_dev1_l1 "(Credit to the private + stock market capitalization)/GDP, 1 lag"
+label var fin_str2_l1 "Stock market capit./(credit to the private sector+stock market capit.), 1 lag"
+label var fin_dev1_b_l1 "(Credit to the private sector+stock market capit.+private bonds)/GDP, 1 lag"
+label var fin_str2_c_l1 "Stock market capit./(private credit+stock market capit.+private bonds), 1 lag"
+
+label var dom_st_lawpol_l1 "Total number of laws & policies passed in a country until time t-1, 1 lag"
+
+** for Table OA9
+
+gen fin_dev1_e_l1 = credit_l1+stock_l1+priveq_l1
+gen fin_str2_e_l1 = (stock_l1+priveq_l1)/(credit_l1+stock_l1+priveq_l1)
+
+
+** for Table OA12
+
+gen fin_dev1_a = credit_bus+stock
+gen fin_str2_a = (stock)/(stock+credit_bus)
+sort country industry year
+gen fin_dev1_a_l1=fin_dev1_a[_n-1] if industry[_n]==industry[_n-1]
+gen fin_str2_a_l1=fin_str2_a[_n-1] if industry[_n]==industry[_n-1]
+
+forval x=1990(1)2015 {
+gen year_`x'=0
+replace year_`x'=1 if `x'==year
+}
+
+egen ci = group (country industry)
+egen ct = group (country year)
+egen it = group (industry year)
+
+
+**Need to create interaction variables by hand as xtabond function in Stata doesn't work with x1#x2 syntax for interactions.
+** for all analysis
+
+*identifying industry C02 benchmarks
+
+tostring industry, gen(industry_cat)
+encode industry_cat, gen(industry_cat2)
+
+drop cotwo_intensity_wd
+
+bysort industry : egen cotwo_intensity_wd = mean(cotwo_per_va)
+bysort industry : egen cotwo_intensity_wd_oecd = mean(cotwo_per_va_oecd)
+gen cotwo_intensity_wd_all=cotwo_intensity_wd 
+replace cotwo_intensity_wd_all=cotwo_intensity_wd_oecd if missing(cotwo_intensity_wd_all)
+
+gen cotwo_fin_dev1_l1 = cotwo_intensity_wd * fin_dev1_l1
+gen cotwo_fin_str2_l1 = cotwo_intensity_wd * fin_str2_l1
+
+
+label var cotwo_fin_dev1_l1 "Financial development cross CO$_{2} intensity"
+label var cotwo_fin_str2_l1 "Equity share cross CO$_{2} intensity"
+
+** for Table 4
+
+gen cotwo_entry_l2 = cotwo_intensity_wd * entrybarriers_l2 
+gen cotwo_treated_stock_l2 = cotwo_intensity_wd * treated_stock_l2
+gen cotwo_cur100_l2 = cotwo_intensity_wd * cur100_l2
+
+
+** for Table 7
+
+gen rd_fin_dev1_l1 = rd * fin_dev1_l1
+gen rd_fin_str2_l1 = rd * fin_str2_l1
+gen tang_fin_dev1_l1 = tang_2 * fin_dev1_l1
+gen tang_fin_str2_l1 = tang_2 * fin_str2_l1
+gen litig_fin_dev1_l1 = sued_share * fin_dev1_l1
+gen litig_fin_str2_l1 = sued_share * fin_str2_l1
+
+label var rd_fin_dev1_l1 "Financial development cross R&D intensity"
+label var rd_fin_str2_l1 "Equity share cross R&D intensity"
+label var tang_fin_dev1_l1 "Financial development cross Asset tangibility"
+label var tang_fin_str2_l1 "Equity share cross Asset tangibility"
+label var litig_fin_dev1_l1 "Financial development cross Litigation risk"
+label var litig_fin_str2_l1 "Equity share cross Litigation risk"
+
+** for Table OA3
+
+gen cotwo_high_fin_dev1_l1=cotwo_intensity_high*fin_dev1_l1
+gen cotwo_high_fin_str2_l1=cotwo_intensity_high*fin_str2_l1
+
+label var cotwo_high_fin_dev1_l1 "Financial development cross CO$_{2} intensity"
+label var cotwo_high_fin_str2_l1 "Equity share cross CO$_{2} intensity"
+
+** for Table OA5
+
+gen cotwo_credit_l1 = cotwo_intensity_wd * credit_l1
+gen cotwo_stock_l1 = cotwo_intensity_wd * stock_l1
+
+label var cotwo_credit_l1 "Credit/GDP cross CO$_{2} intensity"
+label var cotwo_stock_l1 "Stocks/GDP cross CO$_{2} intensity"
+
+** for Table OA6
+
+gen ext_dep_fin_dev1_l1 = ext_dep * fin_dev1_l1
+gen ext_dep_fin_str2_l1 = ext_dep * fin_str2_l1
+
+label var ext_dep_fin_dev1_l1 "Financial development cross External dependence"
+label var ext_dep_fin_str2_l1 "Equity share cross External dependence"
+
+** for Table OA7
+
+local industry_cat_levels = r(levels)
+drop cotwo_intensity_wd_c
+
+bysort industry year: egen cotwo_intensity_wd_c = mean(cotwo_per_va)
+
+gen cotwo_c_fin_dev1_l1 = cotwo_intensity_wd_c * fin_dev1_l1
+gen cotwo_c_fin_str2_l1 = cotwo_intensity_wd_c * fin_str2_l1
+
+drop cotwo_intensity_alt
+bysort industry year: egen x = mean(cotwo_per_va) if country!="United States"
+bysort industry: egen cotwo_intensity_alt=mean(x)
+drop x 
+
+
+gen cotwo_alt_fin_dev1_l1 = cotwo_intensity_alt * fin_dev1_l1
+gen cotwo_alt_fin_str2_l1 = cotwo_intensity_alt * fin_str2_l1
+
+label var cotwo_c_fin_dev1_l1 "Financial development cross CO$_{2} intensity (Contemporaneous)"
+label var cotwo_c_fin_str2_l1 "Equity share cross CO$_{2} intensity (Contemporaneous)"
+
+label var cotwo_alt_fin_str2_l1 "Financial development cross CO$_{2} intensity (US)"
+label var cotwo_c_fin_str2_l1 "Equity share cross CO$_{2} intensity (US)"
+
+** for Table OA8
+
+gen cotwo_fin_dev1_b_l1 = cotwo_intensity_wd * fin_dev1_b_l1
+gen cotwo_fin_str2_c_l1 = cotwo_intensity_wd * fin_str2_c_l1
+
+label var cotwo_fin_dev1_b_l1 "Financial development with bonds cross CO$_{2} intensity"
+label var cotwo_fin_str2_c_l1 "Equity share with bonds cross CO$_{2} intensity"
+
+** for Table OA9
+
+*gen fin_dev1_e_l1 = credit_l1+stock_l1+priveq_l1
+*gen fin_str2_e_l1 = (stock_l1+priveq_l1)/(credit_l1+stock_l1+priveq_l1)
+
+gen cotwo_fin_dev1_e_l1 = cotwo_intensity_wd * fin_dev1_e_l1
+gen cotwo_fin_str2_e_l1 = cotwo_intensity_wd * fin_str2_e_l1
+
+label var cotwo_fin_dev1_e_l1 "Financial development cross CO$_{2} intensity"
+label var cotwo_fin_str2_e_l1 "Equity share cross CO$_{2} intensity"
+
+** for Table OA10
+
+gen fin_dev1_subsidy_l1 = subsidy_fuel_post * fin_dev1_l1
+gen fin_str2_subsidy_l1 = subsidy_fuel_post * fin_str2_l1
+
+label var fin_dev1_subsidy_l1 "Financial development cross Fuel subsidies"
+label var fin_str2_subsidy_l1 "Equity share cross Fuel subsidies"
+
+** for Table OA11
+
+gen cotwo_environmental_laws_l1 = cotwo_intensity_wd * dom_st_lawpol_l1
+gen cotwo_carbon_tax_ets_l1 = cotwo_intensity_wd * carbon_tax_ets_l1
+
+label var cotwo_environmental_laws_l1 "# environmental laws and policies cross CO$_{2} intensity"
+label var cotwo_carbon_tax_ets_l1 "Carbon tax or ETS cross CO$_{2} intensity"
+
+** for Table OA12
+
+gen cotwo_fin_dev1a_l1 = cotwo_intensity_wd * fin_dev1_a_l1
+gen cotwo_fin_str2a_l1 = cotwo_intensity_wd * fin_str2_a_l1
+
+label var cotwo_fin_dev1a_l1 "Financial development cross CO$_{2} intensity"
+label var cotwo_fin_str2a_l1 "Equity share cross CO$_{2} intensity"
+
+save "$data\2_Interim files\country_sector_cleaned.dta", replace
+
+
+
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	
+* COUNTRY DATA CLEANING: Create variables, re-label
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+use "$data\2_Interim files\country_cleaned.dta", clear
+
+forval x=1990(1)2015 {
+gen year_`x'=0
+replace year_`x'=1 if `x'==year
+}
+
+drop if missing(country) & code=="EST"
+
+
+*main financial variables
+
+*producing compound variables
+
+gen fin_dev1=credit+stock
+gen fin_str2=stock/fin_dev1
+gen fin_dev1_b=credit+stock+prbond
+gen fin_str2_c=stock/(credit+stock+prbond)
+
+*producing lags of variables
+
+encode country,gen(country1)
+sort code year
+xtset country1 year
+
+gen credit_l1=L1.credit
+gen stock_l1=L1.stock
+gen bonds_l1=L1.prbond
+gen fin_dev1_l1=L1.fin_dev1
+gen fin_str2_l1=L1.fin_str2
+gen fin_dev1_b_l1=L1.fin_dev1_b
+gen fin_str2_c_l1=L1.fin_str2_c
+gen dom_st_lawpol_l1=L1.dom_st_lawpol
+	 
+*produce labels
+label var credit "Credit to the private sector/GDP"
+label var stock "Stock market capitalization/GDP, 1 lag"
+label var prbond "Value of private bonds/GDP"
+label var fin_dev1 "(Credit to the private + stock market capitalization)/GDP"
+label var fin_str2 "Stock market capit./(credit to the private sector+stock market capit.)"
+label var fin_dev1_b "(Credit to the private sector+stock market capit.+value of private bonds)/GDP"
+label var fin_str2_c "Stock market capit./(credit to the private+stock market capit.+private bonds)"
+
+label var credit_l1 "Credit to the private sector/GDP, 1 lag"
+label var stock_l1 "Stock market capitalization/GDP, 1 lag"
+label var bonds_l1 "Value of private bonds/GDP, 1 lag"
+label var fin_dev1_l1 "(Credit to the private + stock market capitalization)/GDP, 1 lag"
+label var fin_str2_l1 "Stock market capit./(credit to the private sector+stock market capit.), 1 lag"
+label var fin_dev1_b_l1 "(Credit to the private sector+stock market capit.+private bonds)/GDP, 1 lag"
+label var fin_str2_c_l1 "Stock market capit./(private credit+stock market capit.+private bonds), 1 lag"
+label var dom_st_lawpol_l1 "Total number of laws & policies passed in a country until time t-1, 1 lag"
+
+
+save "$data\2_Interim files\country_cleaned.dta", replace
+
+
+
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	
+* ORBIS FIRM-LEVEL DATA CLEANING: Merge datasets
+*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+
+use "$data\1_Raw files\orbis_anon.dta", clear
+
+gen x=nace/100
+gen temp=floor(x)
+
+bysort firmid: egen industry=mean(temp)
+
+rename VERIFIED_EMISSIONS_ emissions
+
+gen emissions_per_assets=emissions/toas
+gen emissions_per_sales=emissions/turn
+
+bysort industry: egen cotwo_ass=mean(emissions_per_assets)
+bysort industry: egen cotwo_sal=mean(emissions_per_sales)
+
+gen post_2006=0
+replace post_2006=1 if year>2006
+
+gen post_2009=0
+replace post_2009=1 if year>2009
+
+gen post_2010=0
+replace post_2010=1 if year>2010
+
+gen post_2011=0
+replace post_2011=1 if year>2011
+
+gen post_2006_cotwo_ass=post_2006*cotwo_ass
+gen post_2006_cotwo_sal=post_2006*cotwo_sal
+
+gen post_2009_cotwo_ass=post_2009*cotwo_ass
+gen post_2009_cotwo_sal=post_2009*cotwo_sal
+
+gen post_2010_cotwo_ass=post_2010*cotwo_ass
+gen post_2010_cotwo_sal=post_2010*cotwo_sal
+
+gen post_2011_cotwo_ass=post_2011*cotwo_ass
+gen post_2011_cotwo_sal=post_2011*cotwo_sal
+
+gen log_equity=log(tshf)
+
+replace solr=. if solr<0
+gen equity_share=solr/100
+
+replace emissions_per_assets=emissions_per_assets
+replace emissions_per_sales=emissions_per_sales
+
+gen log_emissions_per_assets=log(emissions_per_assets)
+gen log_emissions_per_sales=log(emissions_per_sales)
+
+gen be=0 if country=="NL" | country=="DE" | country=="LU" | country=="FR"
+replace be=1 if country=="BE"
+
+gen post_2006_be=post_2006*be
+gen post_2006_cotwo_ass_be=post_2006_cotwo_ass*be
+gen post_2006_cotwo_sal_be=post_2006_cotwo_sal*be
+
+egen country_year=group(country year)
+
+** Summary
+codebook equity_share emissions_per_sales emissions_per_assets if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & emissions_per_sales>=0 & emissions_per_assets>=0
+
+*** matched sample, construction
+
+*encode bvdid, gen(firmid)
+gen belgium = country == "BE"
+bys firmid: egen sector = mean(floor(nace / 100)) 
+
+* winsor2 shfd tshf ncli culi turn toas tfas oppl, replace by(sector year) cuts(1 99)
+
+gen leverage = (ncli + culi) / toas
+replace leverage = . if !inrange(leverage, 0, 2)
+
+gen tang = tfas / toas	
+gen prof = oppl / toas	
+gen nopl = oppl < 0 if !missing(oppl)	
+gen size = log(toas)
+
+xtset firmid year
+probit belgium tang prof size nopl c.size#c.tang c.size#c.prof i.sector if year == 2004
+predict pscore if e(sample)
+
+// adjust score to the groups of countries, sectors and years
+egen cell = group(sector)
+replace pscore = cell*2 + pscore
+
+// use psmatch only to get matching
+gen randomorder = runiform()
+sort randomorder
+psmatch2 belgium, caliper(0.1) neighbor(1) out(year) pscore(pscore) ties //noreplacement
+
+// test PS matching results
+ttest tang if year == 2004, by(belgium)	// before matching
+ttest tang if year == 2004 & !missing(_weight), by(belgium) // after matching
+
+ttest prof if year == 2004, by(belgium)	// before matching
+ttest prof if year == 2004 & !missing(_weight), by(belgium) // after matching
+
+ttest size if year == 2004, by(belgium)	// before matching
+ttest size if year == 2004 & !missing(_weight), by(belgium) // after matching
+
+ttest nopl if year == 2004, by(belgium)	// before matching
+ttest nopl if year == 2004 & !missing(_weight), by(belgium) // after matching
+
+//gen psmw = _weight
+bys firmid: egen psmw = total(_weight), missing 
+
+*** end of matched sample, construction
+
+save "$data\2_Interim files\orbis_cleaned.dta", replace
+
+
+log close

28/replication_package/1_code/2 Tables.do

@@ -0,0 +1,429 @@
+
+log using "${logs}\2 Tables.txt", replace 
+
+* This do file produces Table 1 - 9
+
+********************************************************************************	
+di "INDUSTRY BENCHMARKS (TABLE 1)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+*creating a dataset that contains descriptive statistics
+
+keep industry cotwo_intensity_wd_all rd tang_2 sued_share
+sumup cotwo_intensity_wd_all rd tang_2 sued_share, by(industry) statistics(mean) replace
+collapse cotwo_intensity_wd_all rd tang_2 sued_share, by(industry)
+
+
+*labelling variables to produce industry codes and names for descriptive stats table
+
+gen industry_n = industry
+
+label define industry_n 20 "Wood and products of wood and cork" 26 "Other non-metallic mineral products" 27 "Basic metals" 45 "Construction" 60 "Land transport: transport via pipelines" 61 "Water transport" 62 "Air transport" 105 "Agriculture, hunting, forestry, and fishing" 1014 "Mining and quarrying" 1516 "Food products, beverages, and tobacco" 1719 "Textiles, textile products, leather, and footwear" 2122 "Pulp, paper, paper products, printing, and publishing" 2325 "Chemical, rubber, plastics, and fuel products" 2833 "Fabricated metal products, machinery, and equipment" 3435 "Transport equipment" 4041 "Electricity, gas, and water supply"
+label values industry_n industry_n
+label define industry 20 "20_" 26 "26_" 27 "27_" 45 "45_" 60 "60_" 61 "61_" 62 "62_" 105 "01-05" 1014 "10-14" 1516 "15-16" 1719 "17-19" 2122 "21-22" 2325 "23-25" 2833 "28-33" 3435 "34-35" 4041 "40-41"
+label values industry industry
+
+decode industry, gen(industry_code)
+decode industry_n, gen(industry_name)
+gen industry_order=industry_code
+replace industry_order=substr(industry_order, 1, 2)
+destring industry_order, replace
+sort industry_order
+
+*exporting final table of summary stats
+
+keep industry_code industry_name cotwo_intensity_wd_all rd tang_2 sued_share
+order industry_code industry_name cotwo_intensity_wd_all rd tang_2 sued_share
+cd "$tables"
+dataout, save(Table1) tex replace dec(3)
+
+	filefilter "${tables}\\Table1.tex" "${tables}\\Table1_1.tex", from("\BSend{document}") to("") replace	
+	filefilter "${tables}\\Table1_1.tex" "${tables}\\Table1_2.tex", from("\BSend{tabular}") to("") replace	
+	filefilter "${tables}\\Table1_2.tex" "${tables}\\Table1_3.tex", from("\BSbegin{tabular}{lccccc} \BShline") to("") replace	
+	filefilter "${tables}\\Table1_3.tex" "${tables}\\Table1_4.tex", from("\BSbegin{document}") to("") replace	
+	filefilter "${tables}\\Table1_4.tex" "${tables}\\Table1_5.tex", from("\BSdocumentclass[]{article}") to("") replace	
+	filefilter "${tables}\\Table1_5.tex" "${tables}\\Table1_6.tex", from("\BSsetlength{\BSpdfpagewidth}{8.5in} \BSsetlength{\BSpdfpageheight}{11in}") to("") replace	
+	filefilter "${tables}\\Table1_6.tex" "${tables}\\Table1_7.tex", from("industry\BS_code & industry\BS_name & cotwo\BS_intensity\BS_wd\BS_all & rd & tang\BS_2 & sued\BS_share \BS\BS \BShline") to("") replace
+	filefilter "${tables}\\Table1_7.tex" "${tables}\\Table1_8.tex", from("d \BS\BS") to("d \BS\BS \BShline") replace	
+	filefilter "${tables}\\Table1_8.tex" "${tables}\\Table1-fin.tex", from("\BS_") to(" ") replace	
+	
+	cap erase "${tables}\Table1.tex"
+	forvalues i = 1(1)8 {
+		cap erase "${tables}\\Table1_`i'.tex"
+	}
+	
+
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: AGGREGATE RESULTS (TABLE 2)"
+********************************************************************************
+
+use "$data\2_Interim files\country_cleaned.dta", clear
+drop if country=="China" // do not have sufficent data on "No. environmental laws and policies" 
+
+label var fin_dev1_l1 "Financial development"
+label var fin_str2_l1 "Equity share"
+label var log_gdp_per_cap_l1  "Log GDP per capita"
+label var log_gdp_per_cap_sq_l1  "Log GDP per capita squared"
+label var pop_mil_l1  "Log (Population)"
+label var recession_l1  "Recession"
+label var dom_st_lawpol_l1 "No. environmental laws and policies"
+label var entrybarriers_l2 "Entry barriers "
+label var treated_stock_l2  "Equity market liberalization "
+label var cur100_l2 "Current account liberalization"
+*formal variable definitions can be found in table notes, all variables are lagged
+encode country, gen(country_)
+
+gl c log_gdp_per_cap_l1 log_gdp_per_cap_sq_l1 pop_mil_l1 recession_l1 dom_st_lawpol_l1
+
+* Generate new varaible so that we can use them but aviod them showing up in the output
+foreach var in log_gdp_per_cap_l1 log_gdp_per_cap_sq_l1 pop_mil_l1 recession_l1 dom_st_lawpol_l1 {
+    gen T_`var' = `var'
+}
+
+gl cT T_log_gdp_per_cap_l1 T_log_gdp_per_cap_sq_l1 T_pop_mil_l1 T_recession_l1 T_dom_st_lawpol_l1
+
+eststo clear 
+* OLS
+eststo ols2: reghdfe cotwo_total_per_gdp fin_dev1_l1 fin_str2_l1	$c, a(country year) vce(robust)
+
+* First stages and R2
+eststo fs1: xi: reg fin_dev1_l1 entrybarriers_l2 treated_stock_l2 cur100_l2 $cT i.country i.year 
+eststo fs2: xi: reg fin_str2_l1 entrybarriers_l2 treated_stock_l2 cur100_l2 $cT i.country i.year 
+	
+* 2SLS
+eststo sls2: xi: ivreg2 cotwo_total_per_gdp (fin_dev1_l1 fin_str2_l1=entrybarriers_l2 treated_stock_l2 cur100_l2) $c i.country i.year, robust
+
+* GMM
+xtset country_ year
+eststo gmm2: xi: xtabond cotwo_total_per_gdp l(0/0).(fin_dev1_l1 fin_str2_l1 $c) i.year, lags(1) vce(gmm)
+
+
+estadd local ctryFE "Yes":  ols2 fs1 fs2  sls2  gmm2 
+estadd local yrFE "Yes":  ols2 fs1 fs2  sls2  gmm2 
+noi esttab  ols2 fs1 fs2  sls2  gmm2   using "${tables}\\Table2-fin.tex", replace ///
+	keep(fin_dev1_l1 fin_str2_l1 $c entrybarriers_l2 treated_stock_l2 cur100_l2) ///
+	b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(ctryFE yrFE r2 N idstat idp cdf j jp, fmt(0 0 2 %15.0fc 3 3 3 3 3) /// 
+	labels("\hline \addlinespace[1ex] Country FE" "Year FE" /// 
+		   "\hline \addlinespace[1ex] R-squared" "No. Observations" /// 
+		   "\hline \addlinespace[1ex] Kleibergen-Paap LM statistic" "\textit{p}-value" "F statistic" "Hansen J statistic" "\textit{p}-value")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)	
+
+	
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS (TABLE 3)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+lab var cotwo_fin_dev1_l1 "Financial development $\times$ CO$_{2} intensity"
+lab var cotwo_fin_str2_l1 "Equity share $\times$ CO$_{2} intensity"
+
+label var share_l1 "Sector share"
+
+eststo clear
+
+
+** Emissions per GDP: Credit markets and stock markets, country-industry, industry-year, and country-year FEs
+** OLS
+eststo ols_pergdp: reghdfe cotwo_per_gdp cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** 2SLS
+eststo iv_pergdp: xi: ivreg2 cotwo_per_gdp (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct, cluster(ci)
+** Arellano-Bond
+eststo gmm_pergdp: xi: xtabond cotwo_per_gdp l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct, lags(1) vce(gmm)
+
+estadd local crtsecFE "Yes": ols_pergdp iv_pergdp gmm_pergdp
+estadd local crtyrFE "Yes": ols_pergdp iv_pergdp gmm_pergdp
+estadd local secyrFE "Yes": ols_pergdp iv_pergdp gmm_pergdp
+
+noi esttab ols_pergdp iv_pergdp gmm_pergdp using "${tables}\\Table3.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(crtsecFE crtyrFE secyrFE r2 N cdf, fmt(0 0 0 2 %15.0fc 3) /// 
+	labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] R-squared" "No. Observations" "\hline \addlinespace[1ex] First-stage F statistic")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)	
+		
+filefilter "${tables}\\Table3.tex" "${tables}\\Table3-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table3.tex"		
+		
+		
+		
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: CROSS-SECTOR RE-ALLOCATION (TABLE 4)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** Credit markets and stock markets, country-industry, industry-year, and country-year FEs, OLS
+eststo growth_ols: reghdfe va_g cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Credit markets and stock markets, country-industry, industry-year, and country-year FEs, 2SLS
+eststo growth_iv: xi: ivreg2 va_g (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct, cluster(ci)
+** Credit markets and stock markets, country-industry, industry-year, and country-year FEs, Arellano-Bond
+xtset panel_var year
+eststo growth_gmm: xi: xtabond va_g l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct, lags(1) vce(gmm)
+
+estadd local crtsecFE "Yes": growth_ols growth_iv growth_gmm
+estadd local crtyrFE "Yes": growth_ols growth_iv growth_gmm
+estadd local secyrFE "Yes": growth_ols growth_iv growth_gmm
+
+noi esttab growth_ols growth_iv growth_gmm using "${tables}\\Table4.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(crtsecFE crtyrFE secyrFE r2 N, fmt(0 0 0 2 %15.0fc) /// 
+	labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" /// 
+		   "\hline \addlinespace[1ex] R-squared" "No. Observations" "\hline \addlinespace[1ex] First-stage F statistics")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)		
+		
+filefilter "${tables}\\Table4.tex" "${tables}\\Table4-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table4.tex"	
+
+
+	
+	
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: WITHIN-SECTOR EFFICIENCY (TABLE 5)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+xtset panel_var year
+
+eststo clear
+** Credit markets and stock markets, country-industry, industry-year, and country-year FEs 
+** OLS
+eststo eff_ols: reghdfe cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** 2SLS
+eststo eff_iv: xi: ivreg2 cotwo_per_va (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct, cluster(ci)
+**  Arellano-Bond
+eststo eff_gmm: xi: xtabond cotwo_per_va l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct, lags(1) vce(gmm)
+
+estadd local crtsecFE "Yes": eff_ols eff_iv eff_gmm
+estadd local crtyrFE "Yes": eff_ols eff_iv eff_gmm
+estadd local secyrFE "Yes": eff_ols eff_iv eff_gmm
+
+noi esttab eff_ols eff_iv eff_gmm using "${tables}\\Table5.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(crtsecFE crtyrFE secyrFE r2 N, fmt(0 0 0 2 %15.0fc) /// 
+	labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" /// 
+		   "\hline \addlinespace[1ex] R-squared" "No. Observations" "\hline \addlinespace[1ex] First-stage F statistics")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)		
+		
+filefilter "${tables}\\Table5.tex" "${tables}\\Table5-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table5.tex"
+
+
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: GREEN PATENTS (TABLE 6)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+xtset panel_var year
+
+eststo clear
+** Panel A OLS
+
+
+** Per GDP: Green patents, Greener patents, Greenest patents: Credit markets and stock markets, country-industry, industry-year, and country-year FEs
+eststo patent_pergdp_ols1: reghdfe green_patents_adjusted_per_gdp cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if green_patents_adjusted_per_gdp>0, absorb(ci it ct) cluster(ci)
+eststo patent_pergdp_ols2: reghdfe green_patents_adjusted_a_per_gdp cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if green_patents_adjusted_a_per_gdp>0, absorb(ci it ct) cluster(ci)
+eststo patent_pergdp_ols3: reghdfe green_patents_adjusted_b_per_gdp cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if green_patents_adjusted_b_per_gdp>0, absorb(ci it ct) cluster(ci)
+eststo patent_pergdp_ols4: reghdfe green_patents_adjusted_b_per_gdp cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if oecd==1, absorb(ci it ct) cluster(ci)
+
+** Panel B 2SLS
+
+** Per GDP: Green patents, Greener patents, Greenest patents: Credit markets and stock markets, country-industry, industry-year, and country-year FEs
+eststo patent_pergdp_iv1: xi: ivreg2 green_patents_adjusted_per_gdp (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct if green_patents_adjusted_per_gdp>0, cluster(ci)
+eststo patent_pergdp_iv2: xi: ivreg2 green_patents_adjusted_a_per_gdp (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct if green_patents_adjusted_a_per_gdp>0, cluster(ci)
+eststo patent_pergdp_iv3: xi: ivreg2 green_patents_adjusted_b_per_gdp (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct if green_patents_adjusted_b_per_gdp>0, cluster(ci)
+eststo patent_pergdp_iv4: xi: ivreg2 green_patents_adjusted_b_per_gdp (cotwo_fin_dev1_l1 cotwo_fin_str2_l1=cotwo_entry_l2 cotwo_treated_stock_l2 cotwo_cur100_l2) share_l1 i.ci i.it i.ct if oecd==1, cluster(ci)
+
+** Panel C GMM
+
+** Per GDP: Green patents, Greener patents, Greenest patents: Credit markets and stock markets, country-industry, industry-year, and country-year FEs
+eststo patent_pergdp_gmm1: xi: xtabond green_patents_adjusted_per_gdp l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct if green_patents_adjusted_per_gdp>0, lags(1) vce(gmm)
+eststo patent_pergdp_gmm2: xi: xtabond green_patents_adjusted_a_per_gdp l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct if green_patents_adjusted_a_per_gdp>0, lags(1) vce(gmm)
+eststo patent_pergdp_gmm3: xi: xtabond green_patents_adjusted_b_per_gdp l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct if green_patents_adjusted_b_per_gdp>0, lags(1) vce(gmm)
+eststo patent_pergdp_gmm4: xi: xtabond green_patents_adjusted_b_per_gdp l(0/0).(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) i.ci i.it i.ct if oecd==1, lags(1) vce(gmm)
+
+estadd local crtsecFE "Yes": patent_pergdp_gmm1 patent_pergdp_gmm2 patent_pergdp_gmm3 patent_pergdp_gmm4
+estadd local crtyrFE "Yes":  patent_pergdp_gmm1 patent_pergdp_gmm2 patent_pergdp_gmm3 patent_pergdp_gmm4
+estadd local secyrFE "Yes":  patent_pergdp_gmm1 patent_pergdp_gmm2 patent_pergdp_gmm3 patent_pergdp_gmm4
+
+noi esttab *ols* using "${tables}\\Table6.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(r2 N, fmt(2 %15.0fc) /// 
+	labels("\hline \addlinespace[1ex] R-squared" "No. Observations")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)		 
+filefilter "${tables}\\Table6.tex" "${tables}\\Table6a-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table6.tex"	
+
+noi esttab *iv* using "${tables}\\Table6.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(r2 N, fmt(2 %15.0fc) /// 
+	labels("\hline \addlinespace[1ex] R-squared" "No. Observations")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)		
+filefilter "${tables}\\Table6.tex" "${tables}\\Table6b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table6.tex"	
+
+noi esttab *gmm* using "${tables}\\Table6.tex", replace ///
+	keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(N crtsecFE crtyrFE secyrFE, fmt(%15.0fc 0 0 0) /// 
+	labels("\hline \addlinespace[1ex] No. Observations" /// 
+		   "\hline \\ \hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)			
+filefilter "${tables}\\Table6.tex" "${tables}\\Table6c-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table6.tex"	
+
+
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: FIRM-LEVEL EVIDENCE (TABLE 7)"
+********************************************************************************
+
+use "$data\2_Interim files\orbis_cleaned.dta", clear
+
+lab var post_2006 		"Post 2006"
+lab var post_2006_be 	"Post 2006 $\times$ Belgium"
+
+lab var post_2006_cotwo_sal 	"Post 2006 $\times$ CO$_{2} intensity"
+lab var post_2006_cotwo_sal_be 	"Post 2006 $\times$ CO$_{2} intensity $\times$ Belgium"
+
+** Panel A. Change in equity funding
+eststo clear
+* Column 1. Belgium
+eststo table7a_col1: reghdfe equity_share post_2006 	///
+								if country=="BE" & year>=2001 & year<=2010, absorb(firmid)
+* Column 2. Belgium versus neighbors (non-matched)
+eststo table7a_col2: reghdfe equity_share post_2006 post_2006_be ///
+								if year>=2001 & year<=2010 & (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid)
+* Column 3. Belgium versus neighbors (non-matched)
+eststo table7a_col3: reghdfe equity_share post_2006 post_2006_be [pw = psmw] /// 
+								if year>=2001 & year<=2010 & (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid)
+
+estadd local firmFE "Yes": table7a_col1 table7a_col2 table7a_col3
+
+noi esttab 	table7a* using "${tables}\\Table7a.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines ///
+			stats(firmFE r2 N df_a, fmt(0 2 %15.0fc) /// 
+			labels("\cmidrule(l{.75em}){1-4}  \addlinespace[1ex] Firm FE" "\cmidrule(l{.75em}){1-4}\addlinespace[1ex] R-squared" "No. Observations" "No. Firms")) ///
+			label nomtitles style(tex) nogaps nonotes noconstant star(* .1 ** .05 *** .01)		
+filefilter "${tables}\\Table7a.tex" "${tables}\\Table7a-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table7a.tex"
+	
+** Panel B. Change in emissions
+eststo clear
+* Column 1. Change in emissions per sales, Belgium
+eststo table7b_col1: reghdfe log_emissions_per_sales post_2006_cotwo_sal /// 
+												if country=="BE" & year<=2010, absorb(firmid year)
+					 distinct firmid if e(sample)
+					 eststo table7b_col1, addscalars(firmN `r(ndistinct)')						 
+* Column 2. Change in emissions per sales, Belgium versus neighbors (non-matched)
+eststo table7b_col2: reghdfe log_emissions_per_sales post_2006_cotwo_sal post_2006_cotwo_sal_be /// 
+												if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid country_year)
+					 distinct firmid if e(sample)
+					 eststo table7b_col2, addscalars(firmN `r(ndistinct)')						 
+* Column 3. Change in emissions per sales, Belgium versus neighbors (matched)
+eststo table7b_col3: reghdfe log_emissions_per_sales post_2006_cotwo_sal post_2006_cotwo_sal_be [pw = psmw] /// 
+												if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid)
+					 distinct firmid if e(sample)
+					 eststo table7b_col3, addscalars(firmN `r(ndistinct)')						 
+* Column 4. Change in emissions per assets, Belgium
+eststo table7b_col4: reghdfe log_emissions_per_assets post_2006_cotwo_sal /// 
+												if country=="BE" & year<=2010, absorb(firmid year)
+					 distinct firmid if e(sample)
+					 eststo table7b_col4, addscalars(firmN `r(ndistinct)')						 
+* Column 5. Change in emissions per assets, Belgium versus neighbors (non-matched)
+eststo table7b_col5: reghdfe log_emissions_per_assets post_2006_cotwo_sal post_2006_cotwo_sal_be /// 
+												if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid country_year)
+					 distinct firmid if e(sample)
+					 eststo table7b_col5, addscalars(firmN `r(ndistinct)')						 
+* Column 6. Change in emissions per assets, Belgium versus neighbors (matched)
+eststo table7b_col6: reghdfe log_emissions_per_assets post_2006_cotwo_sal post_2006_cotwo_sal_be [pw = psmw] /// 
+												if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & year<=2010, absorb(firmid)
+					 distinct firmid if e(sample)
+					 eststo table7b_col6, addscalars(firmN `r(ndistinct)')	
+					 
+estadd local firmFE "Yes": 		table7b_col1 table7b_col2 table7b_col3 table7b_col4 table7b_col5 table7b_col6
+estadd local yrFE "Yes": 		table7b_col1 table7b_col4
+estadd local yrFE "No": 		table7b_col2 table7b_col3 table7b_col5 table7b_col6
+estadd local ctryyrFE "Yes": 	table7b_col2 table7b_col5 
+estadd local ctryyrFE "No": 	table7b_col1 table7b_col3 table7b_col4 table7b_col6
+
+noi esttab 	table7b* using "${tables}\\Table7b.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines noconstant ///
+			stats(firmFE yrFE ctryyrFE r2 N firmN, fmt(0 0 0 2 %15.0fc 0) /// 
+			labels("\hline \addlinespace[1ex] Firm FE" "Year FE" "Country $\times$ Year FE" "\hline \addlinespace[1ex] R-squared" "No. Observations" "No. Firms")) ///
+			label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)			
+filefilter "${tables}\\Table7b.tex" "${tables}\\Table7b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table7b.tex"
+	
+
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: CARBON LEAKAGE (TABLE 8)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** Imported CO2, total
+eststo leak1: reghdfe import_co2_total_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Imported CO2, households
+eststo leak2: reghdfe import_co2_hh_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Imported CO2, same sector
+eststo leak3: reghdfe import_co2_ind_same_ag_per_gdp 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Imported CO2, other sectors
+eststo leak4: reghdfe import_co2_ind_other_ag_per_gdp 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Imported CO2, GFCF
+eststo leak5: reghdfe import_co2_gfcf_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** Imported CO2, government
+eststo leak6: reghdfe import_co2_gov_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+
+estadd local crtsecFE "Yes": leak1 leak2 leak3 leak4 leak5 leak6
+estadd local crtyrFE "Yes": leak1 leak2 leak3 leak4 leak5 leak6
+estadd local secyrFE "Yes": leak1 leak2 leak3 leak4 leak5 leak6
+
+
+noi esttab  leak* using "${tables}\\Table8.tex", replace ///
+			keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1)  ///
+			b(%9.4f) se(%9.4f) f nonum nolines ///
+			order(cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 rd_fin_dev1_l1 rd_fin_str2_l1 tang_fin_dev1_l1 tang_fin_str2_l1 litig_fin_dev1_l1 litig_fin_str2_l1 share_l1) ///
+			stats(crtsecFE crtyrFE secyrFE r2 N , fmt(0 0 0 2 %15.0fc) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" /// 
+				   "\hline \addlinespace[1ex] R-squared" "No. Observations" )) ///
+			label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)	
+filefilter "${tables}\\Table8.tex" "${tables}\\Table8-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\Table8.tex"
+
+
+log close

28/replication_package/1_code/3 Charts.do

@@ -0,0 +1,149 @@
+ log using "${logs}\3 Charts.txt", replace 
+ 
+ * This do file produces Charts 1 and 2.
+
+********************************************************************************	
+di "GLOBAL FINANCIAL DEVELOPMENT OVER TIME (CHART 1)"
+********************************************************************************
+
+use "$data\2_Interim files\country_cleaned.dta", clear
+
+
+keep if year<=2015
+
+bysort code: egen fd_av=mean(fin_dev1)
+bysort code: egen fs_av=mean(fin_str2)
+
+drop if fd_av==. | fs_av==.
+
+bysort year: egen pop_mil_tot=sum(pop_mil)
+gen pop_ratio= pop_mil/ pop_mil_tot
+
+gen fd_pw= fin_dev1* pop_ratio
+gen fs_pw= fin_str2* pop_ratio
+
+bysort year: egen fd_world=sum( fd_pw)
+bysort year: egen fs_world=sum( fs_pw)
+
+label var fd_world "Financial Development"
+label var fs_world "Equity Share"
+
+label var year "   "
+
+
+
+qui twoway (line fd_world year if year>=1990 & code=="USA", lcolor(gs0) lwidth(medthick) title("Financial Development and Equity Share") subtitle("World, 1990-2015")) (line fs_world year if year>=1990 & code=="USA", lcolor(gs0) lwidth(medthick) lpattern(dash))
+
+graph export "${figures}/Chart1.png", replace height(1600)
+
+********************************************************************************	
+di "CARBON EMISSIONS PER CAPITA OVER TIME (CHART 2)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+tabstat cotwo_intensity_wd fin_str2, stat(n mean med) col(stat)
+
+* low carbon intensity, low equity share
+reghdfe cotwo_per_gdp year_1991-year_2015 if cotwo_intensity_wd<.49 & fin_str2<.39 & cotwo_intensity_wd!=. & fin_str2!=. & share_l1!=., a(ci)
+
+regsave year_1991-year_2015 using "$tables/Chart2_1", replace
+
+
+use "$tables/Chart2_1", clear
+
+keep var coef stderr
+gen year=.
+foreach i of num 1991/2015 {
+    replace year=`i' if strpos(var, "`i'")
+}
+drop var
+
+gen ci95=1.96*stderr
+label var coef "Point estimate"
+label var year "Year"
+
+serrbar coef ci95 year, xlabel(1991 "91" 1992 "92" 1993 "93" 1994 "94" 1995 "95" 1996 "96" 1997 "97" 1998 "98" 1999 "99" 2000 "00" 2001 "01" 2002 "02" 2003 "03" 2004 "04" 2005 "05" 2006 "06" 2007 "07" 2008 "08" 2009 "09" 2010 "10" 2011 "11" 2012 "12" 2013 "13" 2014 "14" 2015 "15", alternate) title ("Low carbon intensity, low equity share") yscale (range(-0.005 0.005)) ylabel(#7)
+
+graph export "${figures}/Chart2_1.png", replace height(1600)
+cap erase "$tables/Chart2_1.dta"
+
+
+* low carbon intensity, high equity share
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+reghdfe cotwo_per_gdp year_1991-year_2015 if cotwo_intensity_wd<.49 & fin_str2>.39 & cotwo_intensity_wd!=. & fin_str2!=. & share_l1!=., a(ci)
+
+regsave year_1991-year_2015 using "$tables/Chart2_2", replace
+
+use "$tables/Chart2_2", clear
+
+keep var coef stderr
+gen year=.
+foreach i of num 1991/2015 {
+    replace year=`i' if strpos(var, "`i'")
+}
+drop var
+
+gen ci95=1.96*stderr
+label var coef "Point estimate"
+label var year "Year"
+
+serrbar coef ci95 year, xlabel(1991 "91" 1992 "92" 1993 "93" 1994 "94" 1995 "95" 1996 "96" 1997 "97" 1998 "98" 1999 "99" 2000 "00" 2001 "01" 2002 "02" 2003 "03" 2004 "04" 2005 "05" 2006 "06" 2007 "07" 2008 "08" 2009 "09" 2010 "10" 2011 "11" 2012 "12" 2013 "13" 2014 "14" 2015 "15", alternate) title ("Low carbon intensity, high equity share") yscale (range(-0.005 0.005)) ylabel(#7)
+
+graph export "${figures}/Chart2_2.png", replace height(1600)
+cap erase "$tables/Chart2_2.dta"
+
+
+* high carbon intensity, low equity share
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+reghdfe cotwo_per_gdp year_1991-year_2015 if cotwo_intensity_wd>.49 & fin_str2<.39 & cotwo_intensity_wd!=. & fin_str2!=. & share_l1!=., a(ci)
+
+regsave year_1991-year_2015 using "$tables/Chart2_3", replace
+
+use "$tables/Chart2_3", clear
+
+keep var coef stderr
+gen year=.
+foreach i of num 1991/2015 {
+    replace year=`i' if strpos(var, "`i'")
+}
+drop var
+
+gen ci95=1.96*stderr
+label var coef "Point estimate"
+label var year "Year"
+
+serrbar coef ci95 year, xlabel(1991 "91" 1992 "92" 1993 "93" 1994 "94" 1995 "95" 1996 "96" 1997 "97" 1998 "98" 1999 "99" 2000 "00" 2001 "01" 2002 "02" 2003 "03" 2004 "04" 2005 "05" 2006 "06" 2007 "07" 2008 "08" 2009 "09" 2010 "10" 2011 "11" 2012 "12" 2013 "13" 2014 "14" 2015 "15", alternate) title ("High carbon intensity, low equity share") yscale (range(-0.02 0.01)) ylabel(#7)
+
+graph export "${figures}/Chart2_3.png", replace height(1600)
+cap erase "$tables/Chart2_3.dta"
+
+
+* high carbon intensity, high equity share
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+reghdfe cotwo_per_gdp year_1991-year_2015 if cotwo_intensity_wd>.49 & fin_str2>.39 & cotwo_intensity_wd!=. & fin_str2!=. & share_l1!=., a(ci)
+
+regsave year_1991-year_2015 using "$tables/Chart2_4", replace
+
+use "$tables/Chart2_4", clear
+
+keep var coef stderr
+gen year=.
+foreach i of num 1991/2015 {
+    replace year=`i' if strpos(var, "`i'")
+}
+drop var
+
+gen ci95=1.96*stderr
+label var coef "Point estimate"
+label var year "Year"
+
+serrbar coef ci95 year, xlabel(1991 "91" 1992 "92" 1993 "93" 1994 "94" 1995 "95" 1996 "96" 1997 "97" 1998 "98" 1999 "99" 2000 "00" 2001 "01" 2002 "02" 2003 "03" 2004 "04" 2005 "05" 2006 "06" 2007 "07" 2008 "08" 2009 "09" 2010 "10" 2011 "11" 2012 "12" 2013 "13" 2014 "14" 2015 "15", alternate) title ("High carbon intensity, high equity share") yscale (range(-0.02 0.01)) ylabel(#7)
+
+graph export "${figures}/Chart2_4.png", replace height(1600)
+cap erase "$tables/Chart2_4.dta"
+
+log close

28/replication_package/1_code/4 Tables Appendix.do

@@ -0,0 +1,162 @@
+log using "${logs}\4 Tables Appendix.txt", replace  
+ 
+********************************************************************************	
+di "SUMMARY STATISTICS (TA2)"
+********************************************************************************
+
+use "$data\2_Interim files\country_cleaned.dta", clear
+
+** country-level
+
+
+lab var cotwo_total_per_gdp "CO$_{2} emissions/GDP"
+lab var fin_dev1 "Financial development"
+lab var fin_str2 "Equity share"
+lab var gdp_per_cap "GDP per capita"
+lab var pop_mil "Population"
+lab var recession "Recession"
+lab var dom_st_lawpol "# environmental laws and policies"
+lab var entrybarriers "Entry barriers"
+lab var treated_stock "Equity market liberalization"
+lab var cur100 "Current account liberalization"
+
+global country_lev "cotwo_total_per_gdp fin_dev1 fin_str2 gdp_per_cap pop_mil recession dom_st_lawpol entrybarriers treated_stock cur100"
+
+tabstat $country_lev, stat(mean p50 sd min  max) col(stats)
+
+keep $country_lev
+outreg2 using "${tables}\\Table_TA2.tex", replace sum(detail) eqkeep(mean p50 sd min  max) tex(frag) label dec(3) sortvar($country_lev)
+
+
+filefilter "${tables}\\Table_TA2.tex" "${tables}\\Table_TA2_1.tex", from(" & (1) & (2) & (3) & (4) & (5) \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_1.tex" "${tables}\\Table_TA2_2.tex", from(" &  &  &  &  &  \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_2.tex" "${tables}\\Table_TA2_3.tex", from("\BSbegin{tabular}{lccccc} \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_3.tex" "${tables}\\Table_TA2_4.tex", from(" &  &  &  &  &  \BS\BS \BShline") to("") replace
+filefilter "${tables}\\Table_TA2_4.tex" "${tables}\\Table_TA2_5.tex", from("VARIABLES & mean & p50 & sd & min & max \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_5.tex" "${tables}\\Table_TA2_6.tex", from("\BSend{tabular}") to("") replace	
+filefilter "${tables}\\Table_TA2_6.tex" "${tables}\\Table_TA2_country-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+
+cap erase "${tables}\Table_TA2.tex"
+forvalues i = 1(1)6 {
+		cap erase "${tables}\\Table_TA2_`i'.tex"
+	}
+cap erase "${tables}\Table_TA2.txt"
+
+
+** industry level (UNIDO)
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+lab var cotwo_per_gdp "CO2 emissions/GDP"
+lab var va_g "Growth in value added"
+lab var cotwo_per_va "CO2 emissions per value added"
+lab var green_patents_adjusted_per_gdp "Green patents/GDP"
+lab var green_patents_adjusted_a_per_gdp "Green patents/GDP (excl. transport and waste)"
+lab var green_patents_adjusted_b_per_gdp "Green patents/GDP (energy intensive sectors)"
+lab var share "Sector share"
+
+gen manf = (inlist(industry, 20, 26, 27, 1516, 1719, 2122, 2325, 2833, 3435))
+
+keep if manf==1
+
+global industry_lev "cotwo_per_gdp va_g cotwo_per_va share green_patents_adjusted_per_gdp green_patents_adjusted_a_per_gdp green_patents_adjusted_b_per_gdp"
+
+tabstat $industry_lev, stat(mean p50 sd min  max) col(stats)
+
+keep $industry_lev
+outreg2 using "${tables}\\Table_TA2.tex", replace sum(detail) eqkeep(mean p50 sd min  max) tex(frag) label dec(3) sortvar($industry_lev)
+
+
+filefilter "${tables}\\Table_TA2.tex" "${tables}\\Table_TA2_1.tex", from(" & (1) & (2) & (3) & (4) & (5) \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_1.tex" "${tables}\\Table_TA2_2.tex", from(" &  &  &  &  &  \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_2.tex" "${tables}\\Table_TA2_3.tex", from("\BSbegin{tabular}{lccccc} \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_3.tex" "${tables}\\Table_TA2_4.tex", from(" &  &  &  &  &  \BS\BS \BShline") to("") replace
+filefilter "${tables}\\Table_TA2_4.tex" "${tables}\\Table_TA2_5.tex", from("VARIABLES & mean & p50 & sd & min & max \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_5.tex" "${tables}\\Table_TA2_6.tex", from("\BSend{tabular}") to("") replace	
+filefilter "${tables}\\Table_TA2_6.tex" "${tables}\\Table_TA2_industry_UNIDO-fin.tex", from("CO2") to("CO\$_{2}\$") replace	
+
+cap erase "${tables}\Table_TA2.tex"
+forvalues i = 1(1)6 {
+		cap erase "${tables}\\Table_TA2_`i'.tex"
+	}
+cap erase "${tables}\Table_TA2.txt"
+
+
+** industry level (OECD)
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+lab var cotwo_per_gdp "CO2 emissions/GDP"
+lab var va_g "Growth in value added"
+lab var cotwo_per_va "CO2 emissions per value added"
+lab var green_patents_adjusted_per_gdp "Green patents/GDP"
+lab var green_patents_adjusted_a_per_gdp "Green patents/GDP (excl. transport and waste)"
+lab var green_patents_adjusted_b_per_gdp "Green patents/GDP (energy intensive sectors)"
+lab var share "Sector share"
+
+keep if oecd==1
+
+global industry_lev_oecd "cotwo_per_gdp va_g_oecd cotwo_per_va_oecd green_patents_adjusted_per_gdp green_patents_adjusted_a_per_gdp green_patents_adjusted_b_per_gdp va_oecd_share"
+
+tabstat $industry_lev_oecd, stat(mean p50 sd min  max) col(stats)
+
+keep $industry_lev_oecd
+outreg2 using "${tables}\\Table_TA2.tex", replace sum(detail) eqkeep(mean p50 sd min  max) tex(frag) label dec(3) sortvar($industry_lev_oecd)
+
+
+filefilter "${tables}\\Table_TA2.tex" "${tables}\\Table_TA2_1.tex", from(" & (1) & (2) & (3) & (4) & (5) \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_1.tex" "${tables}\\Table_TA2_2.tex", from(" &  &  &  &  &  \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_2.tex" "${tables}\\Table_TA2_3.tex", from("\BSbegin{tabular}{lccccc} \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_3.tex" "${tables}\\Table_TA2_4.tex", from(" &  &  &  &  &  \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_4.tex" "${tables}\\Table_TA2_5.tex", from("VARIABLES & mean & p50 & sd & min & max \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_5.tex" "${tables}\\Table_TA2_6.tex", from("\BSend{tabular}") to("") replace	
+filefilter "${tables}\\Table_TA2_6.tex" "${tables}\\Table_TA2_industry_OECD-fin.tex", from("CO2") to("CO\$_{2}\$") replace	
+
+cap erase "${tables}\Table_TA2.tex"
+forvalues i = 1(1)6 {
+		cap erase "${tables}\\Table_TA2_`i'.tex"
+	}
+cap erase "${tables}\Table_TA2.txt"
+
+
+** firm level (Orbis)
+
+use "$data\2_Interim files\orbis_cleaned.dta", clear
+
+keep if (country=="BE" | country=="NL" | country=="DE" | country=="LU" | country=="FR") & emissions_per_sales>=0 & emissions_per_assets>=0
+
+lab var equity_share "Equity share"
+lab var emissions_per_sales "CO$_{2} emissions/sales, in thousands"
+lab var emissions_per_assets "CO$_{2} emissions/assets, in thousands"
+
+replace emissions_per_sales=emissions_per_sales/1000
+replace emissions_per_assets=emissions_per_assets/1000
+
+global orbis "emissions_per_sales emissions_per_assets equity_share"
+
+tabstat $orbis, stat(mean p50 sd min  max) col(stats)
+
+keep $orbis
+outreg2 using "${tables}\\Table_TA2.tex", replace sum(detail) eqkeep(mean p50 sd min  max) tex(frag) label dec(3) sortvar($orbis)
+
+
+
+filefilter "${tables}\\Table_TA2.tex" "${tables}\\Table_TA2_1.tex", from(" & (1) & (2) & (3) & (4) & (5) \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_1.tex" "${tables}\\Table_TA2_2.tex", from(" &  &  &  &  &  \BS\BS") to("") replace	
+filefilter "${tables}\\Table_TA2_2.tex" "${tables}\\Table_TA2_3.tex", from("\BSbegin{tabular}{lccccc} \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_3.tex" "${tables}\\Table_TA2_4.tex", from(" &  &  &  &  &  \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_4.tex" "${tables}\\Table_TA2_5.tex", from("VARIABLES & mean & p50 & sd & min & max \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\Table_TA2_5.tex"  "${tables}\\Table_TA2_6.tex", from("\BSend{tabular}") to("") replace	
+filefilter "${tables}\\Table_TA2_6.tex" "${tables}\\Table_TA2_orbis-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+
+cap erase "${tables}\Table_TA2.tex"
+forvalues i = 1(1)6 {
+		cap erase "${tables}\\Table_TA2_`i'.tex"
+	}
+cap erase "${tables}\Table_TA2.txt"
+
+
+
+log close
+
+

28/replication_package/1_code/5 Tables Online Appendix.do

@@ -0,0 +1,913 @@
+ log using "${logs}\5 Tables Online Appendix.txt", replace 
+  
+********************************************************************************	
+di "SUMMARY STATISTICS BY COUNTRY (TABLE OA1)"
+********************************************************************************
+ 
+use "$data\2_Interim files\country_cleaned.dta", clear
+ 
+bysort country: egen fin_dev1_av=mean(fin_dev1)
+bysort country: egen fin_str2_av=mean(fin_str2)
+
+bysort country: egen cotwo_total_per_gdp_av=mean(cotwo_total_per_gdp)
+
+sort country year
+drop if country[_n]==country[_n-1]
+
+//
+
+keep country fin_dev1_av fin_str2_av  cotwo_total_per_gdp_av
+
+replace country = "China" if country == "China (People's Republic of)"
+replace country = "Macedonia" if country == "Macedonia, FYR"
+
+foreach v of varlist fin_dev1_av fin_str2_av  cotwo_total_per_gdp_av {
+    gen `v'_r=string(`v',"%4.3f")
+	destring `v'_r, replace
+	drop `v'
+}
+
+cd "$tables"
+dataout, save(TableOA1) tex replace
+
+filefilter "${tables}\\TableOA1.tex" "${tables}\\TableOA1_1.tex", from("\BSdocumentclass[]{article}") to("") replace	
+filefilter "${tables}\\TableOA1_1.tex" "${tables}\\TableOA1_2.tex", from("\BSsetlength{\BSpdfpagewidth}{8.5in} \BSsetlength{\BSpdfpageheight}{11in}") to("") replace	
+filefilter "${tables}\\TableOA1_2.tex" "${tables}\\TableOA1_3.tex", from("\BSbegin{document}") to("") replace	
+filefilter "${tables}\\TableOA1_3.tex" "${tables}\\TableOA1_4.tex", from("\BSbegin{tabular}{lccc} \BShline") to("") replace	
+filefilter "${tables}\\TableOA1_4.tex" "${tables}\\TableOA1_5.tex", from("country & fin\BS_dev1\BS_av\BS_r & fin\BS_str2\BS_av\BS_r & cotwo\BS_total\BS_per\BS_gdp\BS_av\BS_r \BS\BS \BShline") to("") replace	
+filefilter "${tables}\\TableOA1_5.tex"  "${tables}\\TableOA1_6.tex", from(" Zambia & 0.201 & 0.587 & 0.173 \BS\BS \BShline") to("Zambia & 0.201 & 0.587  & 0.173 \BS\BS") replace	
+filefilter "${tables}\\TableOA1_6.tex"  "${tables}\\TableOA1_7.tex", from("\BSend{tabular}") to("") replace	
+filefilter "${tables}\\TableOA1_7.tex"  "${tables}\\TableOA1-fin.tex", from("\BSend{document}") to("") replace	
+
+	
+cap erase "${tables}\TableOA1.tex"
+forvalues i = 1(1)7 {
+		cap erase "${tables}\\TableOA1_`i'.tex"
+	}
+	
+
+	
+********************************************************************************	
+di "FINANCE AND CARBON EMISSIONS: MECHANISMS (TABLE OA2)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+lab var share_l1 "Sector share"
+lab var cotwo_fin_dev1_l1 "Financial development $\times$ CO{2} intensity"
+lab var cotwo_fin_str2_l1 "Equity share $\times$ CO{2} intensity"
+lab var rd_fin_dev1_l1 "Financial development $\times$ R\&D intensity"
+lab var rd_fin_str2_l1 "Equity share $\times$ R\&D intensity"
+lab var tang_fin_dev1_l1 "Financial development $\times$ Asset tangibility"
+lab var tang_fin_str2_l1 "Equity share $\times$ Asset tangibility"
+lab var litig_fin_dev1_l1 "Financial development $\times$ Litigation risk"	
+lab var litig_fin_str2_l1 "Equity share $\times$ Litigation risk"
+
+* Panel A. Cross-sector reallocation - R&D intensity, Asset tangibility, Litigation risk
+eststo clear
+eststo cross_rd: 		reghdfe va_g cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	rd_fin_dev1_l1 rd_fin_str2_l1 		share_l1, absorb(ci it ct) cluster(ci)
+eststo cross_asset: 	reghdfe va_g cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	tang_fin_dev1_l1 tang_fin_str2_l1 	share_l1, absorb(ci it ct) cluster(ci)
+eststo cross_lit: 		reghdfe va_g cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	litig_fin_dev1_l1 litig_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+noi esttab 	cross* using "${tables}\\TableOA2a.tex", replace ///
+			keep(share_l1 cotwo_fin_dev1_l1 cotwo_fin_str2_l1 rd_fin_dev1_l1 rd_fin_str2_l1 tang_fin_dev1_l1 tang_fin_str2_l1 litig_fin_dev1_l1 litig_fin_str2_l1)  ///
+			b(%9.4f) se(%9.4f) f nonum nolines ///
+			order(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 rd_fin_dev1_l1 rd_fin_str2_l1 tang_fin_dev1_l1 tang_fin_str2_l1 litig_fin_dev1_l1 litig_fin_str2_l1 share_l1) ///
+			stats(r2 N, fmt(2 %15.0fc) /// 
+			labels("\hline \addlinespace[1ex] R-squared" "No. Observations")) ///
+			label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)		
+filefilter "${tables}\\TableOA2a.tex" "${tables}\\TableOA2a-fin.tex", from("CO2") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA2a.tex"
+
+* Panel B. Within-sector efficiency - R&D intensity, Asset tangibility, Litigation risk
+eststo clear
+eststo within_rd: 		reghdfe cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	rd_fin_dev1_l1 rd_fin_str2_l1 		share_l1, absorb(ci it ct) cluster(ci)
+eststo within_asset: 	reghdfe cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	tang_fin_dev1_l1 tang_fin_str2_l1 	share_l1, absorb(ci it ct) cluster(ci)
+eststo within_lit: 		reghdfe cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 	litig_fin_dev1_l1 litig_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+estadd local crtsecFE "Yes": within_rd within_asset within_lit
+estadd local crtyrFE "Yes": within_rd within_asset within_lit
+estadd local secyrFE "Yes": within_rd within_asset within_lit
+
+noi esttab  within* using "${tables}\\TableOA2b.tex", replace ///
+			keep(share_l1 cotwo_fin_dev1_l1 cotwo_fin_str2_l1 rd_fin_dev1_l1 rd_fin_str2_l1 tang_fin_dev1_l1 tang_fin_str2_l1 litig_fin_dev1_l1 litig_fin_str2_l1)  ///
+			b(%9.4f) se(%9.4f) f nonum nolines ///
+			order(cotwo_per_va cotwo_fin_dev1_l1 cotwo_fin_str2_l1 rd_fin_dev1_l1 rd_fin_str2_l1 tang_fin_dev1_l1 tang_fin_str2_l1 litig_fin_dev1_l1 litig_fin_str2_l1 share_l1) ///
+			stats(r2 N crtsecFE crtyrFE secyrFE , fmt(2 %15.0fc 0 0 0 ) /// 
+			labels("\hline \addlinespace[1ex] R-squared" "No. Observations" ///
+				  "\hline \\ \hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" )) ///
+			label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)	
+filefilter "${tables}\\TableOA2b.tex" "${tables}\\TableOA2b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA2b.tex"
+
+
+
+********************************************************************************	
+di "CARBON LEAKAGE, LOW VERSUS HIGH MOBILITY SECTORS (TABLE OA3)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+** Panel A. Low mobility (high transportation costs)
+eststo clear
+** Imported CO2, total
+eststo reg1: reghdfe import_co2_total_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+** Imported CO2, households
+eststo reg2: reghdfe import_co2_hh_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+** Imported CO2, same sector
+eststo reg3: reghdfe import_co2_ind_same_ag_per_gdp 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+** Imported CO2, other sectors
+eststo reg4: reghdfe import_co2_ind_other_ag_per_gdp 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+** Imported CO2, GFCF
+eststo reg5: reghdfe import_co2_gfcf_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+** Imported CO2, government
+eststo reg6: reghdfe import_co2_gov_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport>0.01 & transport!=., absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+estadd local ctryyrFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+estadd local secyrFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+
+noi esttab 	reg* using "${tables}\\TableOA3_a.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) ///
+			stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+			label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA3_a.tex" "${tables}\\TableOA3_a-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA3_a.tex"			
+			
+** Panel B. High mobility (low transportation costs)
+eststo clear
+** Imported CO2, total
+eststo reg1: reghdfe import_co2_total_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+** Imported CO2, households
+eststo reg2: reghdfe import_co2_hh_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+** Imported CO2, same sector
+eststo reg3: reghdfe import_co2_ind_same_ag_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+** Imported CO2, other sectors
+eststo reg4: reghdfe import_co2_ind_other_ag_per_gdp 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+** Imported CO2, GFCF
+eststo reg5: reghdfe import_co2_gfcf_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+** Imported CO2, government
+eststo reg6: reghdfe import_co2_gov_ag_per_gdp 			cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1 if transport<0.01, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+estadd local ctryyrFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+estadd local secyrFE "Yes": 	reg1 reg2 reg3 reg4 reg5 reg6
+
+noi esttab 	reg* using "${tables}\\TableOA3_b.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1) ///
+			stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+			label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA3_b.tex" "${tables}\\TableOA3_b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA3_b.tex"
+
+
+********************************************************************************	
+di "ROBUST SAMPLE: OECD COUNTRIES (TABLE OA4)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var va_oecd_share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_high_fin_dev1_l1 cotwo_high_fin_str2_l1 va_oecd_share_l1, absorb (ci it ct) cluster (ci)
+** value added growth
+eststo reg3: reghdfe va_g_oecd 			cotwo_high_fin_dev1_l1 cotwo_high_fin_str2_l1 va_oecd_share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va_oecd 	cotwo_high_fin_dev1_l1 cotwo_high_fin_str2_l1 va_oecd_share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA4.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines keep(cotwo_high_fin_dev1_l1 cotwo_high_fin_str2_l1 va_oecd_share_l1) ///
+			stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+			label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA4.tex" "${tables}\\TableOA4-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA4.tex"
+			
+			
+********************************************************************************	
+di "5-YEAR AVERAGES (TABLE OA5)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+ 
+
+gen pet=1
+replace pet=2 if year>1994
+replace pet=3 if year>1999
+replace pet=4 if year>2004
+replace pet=5 if year>2009
+
+bysort country pet: egen fin_dev1_pet=mean(fin_dev1)
+bysort country pet: egen fin_str2_pet=mean(fin_str2)
+
+bysort country industry pet: egen cotwo_per_cap_pet=mean(cotwo_per_cap)
+bysort country industry pet: egen cotwo_per_gdp_pet=mean(cotwo_per_gdp)
+bysort country industry pet: egen va_g_pet=mean(va_g)
+bysort country industry pet: egen cotwo_per_va_pet=mean(cotwo_per_va)
+bysort country industry pet: egen green_patents_per_cap_pet=mean(green_patents_adjusted_per_cap)
+bysort country industry pet: egen green_patents_a_per_cap_pet=mean(green_patents_adjusted_a_per_cap)
+bysort country industry pet: egen green_patents_b_per_cap_pet=mean(green_patents_adjusted_b_per_cap)
+bysort country industry pet: egen green_patents_per_gdp_pet=mean(green_patents_adjusted_per_gdp)
+bysort country industry pet: egen green_patents_a_per_gdp_pet=mean(green_patents_adjusted_a_per_gdp)
+bysort country industry pet: egen green_patents_b_per_gdp_pet=mean(green_patents_adjusted_b_per_gdp)
+bysort country industry pet: egen share_pet=mean(share)
+
+sort country industry year
+drop if pet[_n]==pet[_n-1]
+
+gen fin_dev1_pet_l1=fin_dev1_pet[_n-1] if industry[_n]==industry[_n-1]
+gen fin_str2_pet_l1=fin_str2_pet[_n-1] if industry[_n]==industry[_n-1]
+
+gen cotwo_wd_fin_dev1_pet=cotwo_intensity_wd*fin_dev1_pet_l1
+gen cotwo_wd_fin_str2_pet=cotwo_intensity_wd*fin_str2_pet_l1
+
+gen share_pet_l1=share_pet[_n-1] if industry[_n]==industry[_n-1]
+
+egen cp=group(country pet)
+egen ip=group(industry pet)
+
+label var share_pet_l1 "Sector share"
+label var cotwo_wd_fin_dev1_pet "Financial development $\times$ CO2 intensity"
+label var cotwo_wd_fin_str2_pet "Equity share $\times$ CO2 intensity"
+
+eststo clear
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp_pet 			cotwo_wd_fin_dev1_pet cotwo_wd_fin_str2_pet share_pet_l1, absorb(ci ip cp) cluster (ci)
+** value added growth
+eststo reg3: reghdfe va_g_pet 					cotwo_wd_fin_dev1_pet cotwo_wd_fin_str2_pet share_pet_l1, absorb(ci ip cp) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va_pet 			cotwo_wd_fin_dev1_pet cotwo_wd_fin_str2_pet share_pet_l1, absorb(ci ip cp) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4 
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA5.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines drop(_cons) ///
+			stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+			label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA5.tex" "${tables}\\TableOA5-fin.tex", from("CO2") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA5.tex"
+
+
+********************************************************************************	
+di "FINANCIAL DEVELOPMENT AND STRUCTURE, CREDIT VERSUS STOCK (TABLE OA6)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 			cotwo_credit_l1 cotwo_stock_l1 share_l1, absorb (ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g cotwo_credit_l1 	cotwo_stock_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 			cotwo_credit_l1 cotwo_stock_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA6.tex", replace ///
+			b(%9.4f) se(%9.4f) f nonum nolines keep(cotwo_credit_l1 cotwo_stock_l1 share_l1) ///
+			stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+			labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+			label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA6.tex" "${tables}\\TableOA6-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA6.tex"
+
+
+********************************************************************************	
+di "CONTROLLING FOR EXTERNAL FINANCIAL DEPENDENCE (TABLE OA7)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 					cotwo_fin_dev1_l1 cotwo_fin_str2_l1 ext_dep_fin_dev1_l1 ext_dep_fin_str2_l1 share_l1, absorb (ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g cotwo_fin_dev1_l1 			cotwo_fin_str2_l1 ext_dep_fin_dev1_l1 ext_dep_fin_str2_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va cotwo_fin_dev1_l1 	cotwo_fin_str2_l1 ext_dep_fin_dev1_l1 ext_dep_fin_str2_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 	
+
+noi esttab 	reg* using "${tables}\\TableOA7.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 ext_dep_fin_dev1_l1 ext_dep_fin_str2_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA7.tex" "${tables}\\TableOA7-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA7.tex"
+
+********************************************************************************	
+di "ROBUSTNESS: ALTERNATIVE POLLUTION INTENSIFIES (TABLE OA8)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+lab var cotwo_c_fin_str2_l1 "Equity share cross CO{2} intensity (Contemporaneous)"
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** Contemporaneous carbon intensity
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 				cotwo_c_fin_dev1_l1 cotwo_c_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 						cotwo_c_fin_dev1_l1 cotwo_c_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 				cotwo_c_fin_dev1_l1 cotwo_c_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 	
+
+noi esttab 	reg* using "${tables}\\TableOA8_a.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_c_fin_dev1_l1 cotwo_c_fin_str2_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA8_a.tex" "${tables}\\TableOA8_a-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA8_a.tex"
+
+lab var cotwo_alt_fin_dev1_l1 "Financial development $\times$ CO{2} intensity (US)"
+lab var cotwo_alt_fin_str2_l1 "Equity share $\times$ CO{2} intensity (US)"
+
+eststo clear
+** US carbon intensity
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 			cotwo_alt_fin_dev1_l1 cotwo_alt_fin_str2_l1 share_l1 if country!="United States", absorb(ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 					cotwo_alt_fin_dev1_l1 cotwo_alt_fin_str2_l1 share_l1 if country!="United States", absorb(ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 			cotwo_alt_fin_dev1_l1 cotwo_alt_fin_str2_l1 share_l1 if country!="United States", absorb(ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA8_b.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_alt_fin_dev1_l1 cotwo_alt_fin_str2_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA8_b.tex" "${tables}\\TableOA8_b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA8_b.tex"
+	
+	
+
+********************************************************************************	
+di "ADDING CORPORATE BONDS (TABLE OA9)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+*Financial development = credit + stocks + bonds; Equity share = stocks / (credit + stocks + bonds)
+label var share_l1 "Sector share"
+
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 			cotwo_fin_dev1_b_l1 cotwo_fin_str2_c_l1 share_l1, absorb (ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 					cotwo_fin_dev1_b_l1 cotwo_fin_str2_c_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 			cotwo_fin_dev1_b_l1 cotwo_fin_str2_c_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA9.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_fin_dev1_b_l1 cotwo_fin_str2_c_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA9.tex" "${tables}\\TableOA9-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA9.tex"
+
+
+********************************************************************************	
+di "ADDING PRIVATE EQUITY (TABLE OA10)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_fin_dev1_e_l1 cotwo_fin_str2_e_l1 share_l1, absorb (ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 				cotwo_fin_dev1_e_l1 cotwo_fin_str2_e_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 		cotwo_fin_dev1_e_l1 cotwo_fin_str2_e_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA10.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_fin_dev1_e_l1 cotwo_fin_str2_e_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA10.tex" "${tables}\\TableOA10-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA10.tex"
+
+
+********************************************************************************	
+di "ONLY BUSINESS CREDIT (TABLE OA11)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_fin_dev1a_l1 cotwo_fin_str2a_l1 share_l1, absorb (ci it ct) cluster(ci)
+** Value added growth
+eststo reg3: reghdfe va_g 				cotwo_fin_dev1a_l1 cotwo_fin_str2a_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 		cotwo_fin_dev1a_l1 cotwo_fin_str2a_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA11.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines drop(_cons) /// 
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA11.tex" "${tables}\\TableOA11-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA11.tex"
+
+
+********************************************************************************	
+di "CONTROLLING FOR FUEL SUBSIDIES (TABLE OA12)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 fin_dev1_subsidy_l1 fin_str2_subsidy_l1 share_l1, absorb (ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 				cotwo_fin_dev1_l1 cotwo_fin_str2_l1 fin_dev1_subsidy_l1 fin_str2_subsidy_l1 share_l1, absorb (ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 fin_dev1_subsidy_l1 fin_str2_subsidy_l1 share_l1, absorb (ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA12.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines /// 
+		keep(cotwo_fin_dev1_l1 cotwo_fin_str2_l1 fin_dev1_subsidy_l1 fin_str2_subsidy_l1 share_l1) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA12.tex" "${tables}\\TableOA12-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA12.tex"
+
+
+
+********************************************************************************	
+di "CONTROLLING FOR ENVIRONMENTAL LAWS AND POLICIES (TABLE OA13)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+label var cotwo_environmental_laws_l1 "No. environmental laws and policies $\times$ CO{2} intensity"
+
+eststo clear
+** Panel A. Environmental laws and policies
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_environmental_laws_l1 share_l1, absorb(ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 				cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_environmental_laws_l1 share_l1, absorb(ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_environmental_laws_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA13_a.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines drop(_cons) ///
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA13_a.tex" "${tables}\\TableOA13_a-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA13_a.tex"
+
+eststo clear
+** Panel B. Carbon tax or ETS
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_carbon_tax_ets_l1 share_l1, absorb(ci it ct) cluster(ci)
+** value added growth
+eststo reg3: reghdfe va_g 				cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_carbon_tax_ets_l1 share_l1, absorb(ci it ct) cluster(ci)
+** CO2 per value added
+eststo reg4: reghdfe cotwo_per_va 		cotwo_fin_dev1_l1 cotwo_fin_str2_l1 cotwo_carbon_tax_ets_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": 	 reg2 reg3 reg4
+estadd local ctryyrFE "Yes": 	 reg2 reg3 reg4 
+estadd local secyrFE "Yes": 	 reg2 reg3 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA13_b.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines drop(_cons) /// 
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA13_b.tex" "${tables}\\TableOA13_b-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA13_b.tex"
+
+
+********************************************************************************	
+di "ALTERNATIVE EMISSIONS DATA (TABLE OA14)"
+********************************************************************************
+
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+label var share_l1 "Sector share"
+foreach i of varlist _all {
+	local a : variable label `i'
+	local a: subinstr local a " cross " " $\times$ "
+	label var `i' "`a'"
+}
+
+eststo clear
+*** CO2 data from exio, including non-combustion
+** CO2 per GDP
+eststo reg2: reghdfe cotwo_per_gdp_exio 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+*** All air emissions data from exio, including non-combustion
+** Emissions per GDP
+eststo reg4: reghdfe tot_air_per_gdp_exio 	cotwo_fin_dev1_l1 cotwo_fin_str2_l1 share_l1, absorb(ci it ct) cluster(ci)
+
+estadd local ctrysecFE "Yes": reg2 reg4
+estadd local ctryyrFE "Yes":  reg2 reg4 
+estadd local secyrFE "Yes":   reg2 reg4 
+
+noi esttab 	reg* using "${tables}\\TableOA14.tex", replace ///
+		b(%9.4f) se(%9.4f) f nonum nolines drop(_cons) /// 
+		stats(ctrysecFE ctryyrFE secyrFE N r2 , fmt(0 0 0 %15.0fc 2) /// 
+		labels("\hline \addlinespace[1ex] Country $\times$ Sector FE" "Country $\times$ Year FE" "Sector $\times$ Year FE" "\hline \addlinespace[1ex] No. Observations" "R-squared")) ///
+		label nomtitles style(tex) nogaps nonotes	star(* .1 ** .05 *** .01)  
+filefilter "${tables}\\TableOA14.tex" "${tables}\\TableOA14-fin.tex", from("CO{2}") to("CO\$_{2}\$") replace	
+cap erase "${tables}\\TableOA14.tex"
+
+
+
+
+********************************************************************************	
+di "PROPERTIES OF INITIAL AND PROPENSITY SCORE-MATCHED SAMPLE (TABLE OA15)"
+********************************************************************************
+use "$data\2_Interim files\orbis_cleaned.dta", clear
+
+eststo clear
+estimates clear
+
+gen BE = .
+gen nonBE = .
+gen diff = .
+gen pval = .
+gen ttest = ""
+
+
+local i = 1
+foreach var in tang prof nopl size {
+	
+	ttest `var' if year == 2004, by(belgium)   // before matching
+
+	replace BE = `r(mu_2)' 					if _n==`i'
+	replace nonBE = `r(mu_1)' 				if _n==`i'
+	replace diff = `r(mu_2)' - `r(mu_1)' 	if _n==`i'
+	replace pval = `r(p)' 					if _n==`i'
+	replace ttest = "`var'" if _n==`i'
+	
+	local i = `i' + 1
+}
+
+	ttest tang if year == 2004, by(belgium) // after matching
+	replace BE = `r(N_2)' if _n==5
+	replace nonBE = `r(N_1)' if _n==5
+
+local i = 10
+foreach var in tang prof nopl size {
+	
+	ttest `var' if year == 2004 & !missing(_weight), by(belgium) // after matching
+
+	replace BE = `r(mu_2)' 					if _n==`i'
+	replace nonBE = `r(mu_1)' 				if _n==`i'
+	replace diff = `r(mu_2)' - `r(mu_1)' 	if _n==`i'
+	replace pval = `r(p)' 					if _n==`i'
+	replace ttest = "`var'" if _n==`i'
+	
+	local i = `i' + 1
+}
+
+	ttest tang if year == 2004 & !missing(_weight), by(belgium) // after matching
+	replace BE = `r(N_2)' if _n==14
+	replace nonBE = `r(N_1)' if _n==14
+	
+gen 	lab = ""
+replace lab = "Tangible assets / Total assets" if ttest=="tang"
+replace lab = "Operating profit / Total assets" if ttest=="prof"
+replace lab = "Negative profit dummy" if ttest=="nopl"
+replace lab = "Log (Total assets)" if ttest=="size"
+replace lab = "No. observations" if _n==14 | _n==5
+
+keep BE nonBE diff pval ttest lab
+
+gen 	helper = "MATCHED" if inrange(_n, 1, 5)
+replace	helper = "NON-MATCHED" if inrange(_n, 10, 14)
+
+drop if missing(helper)
+
+gen 	star = "*" 		if pval <=0.001 
+replace star = "**" 	if pval <=0.050 
+replace star = "***" 	if pval <=0.010 
+
+replace diff = round(diff, 0.001)
+replace BE = round(BE, 0.001)
+replace nonBE = round(nonBE, 0.001)
+
+gen difference = string(diff) + star
+replace difference = "" if difference=="."
+replace difference = subinstr(difference, ".", "0.", .)
+
+gen BE_sample = string(BE) 
+replace BE_sample = subinstr(BE_sample, ".", "0.", .) if BE<1
+
+gen nonBE_sample = string(nonBE)
+replace nonBE_sample = subinstr(nonBE_sample, ".", "0.", .)  if BE<1
+replace nonBE_sample = "2,330" if nonBE_sample=="2330"
+
+keep  lab BE_sample nonBE_sample difference helper
+
+preserve
+drop if helper=="NON-MATCHED"
+drop helper
+order lab BE_sample nonBE_sample difference
+cd "$tables"
+dataout, save(TableOA15_1) tex replace dec(3)
+
+
+	filefilter "${tables}\\TableOA15_1.tex" "${tables}\\TableOA15_2.tex", from("\BSend{document}") to("") replace	
+	filefilter "${tables}\\TableOA15_2.tex" "${tables}\\TableOA15_3.tex", from("\BSend{tabular}") to("") replace	
+	filefilter "${tables}\\TableOA15_3.tex" "${tables}\\TableOA15_4.tex", from("\BSbegin{tabular}{lccc} \BShline") to("") replace	
+	filefilter "${tables}\\TableOA15_4.tex" "${tables}\\TableOA15_5.tex", from("\BSbegin{document}") to("") replace	
+	filefilter "${tables}\\TableOA15_5.tex" "${tables}\\TableOA15_6.tex", from("\BSdocumentclass[]{article}") to("") replace	
+	filefilter "${tables}\\TableOA15_6.tex" "${tables}\\TableOA15_7.tex", from("\BSsetlength{\BSpdfpagewidth}{8.5in} \BSsetlength{\BSpdfpageheight}{11in}") to("") replace	
+	filefilter "${tables}\\TableOA15_7.tex" "${tables}\\TableOA15_8.tex", from("lab & BE\BS_sample & nonBE\BS_sample & difference \BS\BS") to("") replace
+	filefilter "${tables}\\TableOA15_8.tex" "${tables}\\TableOA15_9.tex", from("\BShline") to("") replace
+	filefilter "${tables}\\TableOA15_9.tex" "${tables}\\TableOA15_a-fin.tex", from(".000") to("") replace	
+	
+	forvalues i = 1(1)9 {
+		cap erase "${tables}\\TableOA15_`i'.tex"
+	}
+restore
+
+preserve
+drop if helper=="MATCHED"
+drop helper
+order lab BE_sample nonBE_sample difference
+cd "$tables"
+dataout, save(TableOA15_1) tex replace dec(3)
+
+
+	filefilter "${tables}\\TableOA15_1.tex" "${tables}\\TableOA15_2.tex", from("\BSend{document}") to("") replace	
+	filefilter "${tables}\\TableOA15_2.tex" "${tables}\\TableOA15_3.tex", from("\BSend{tabular}") to("") replace	
+	filefilter "${tables}\\TableOA15_3.tex" "${tables}\\TableOA15_4.tex", from("\BSbegin{tabular}{lccc} \BShline") to("") replace	
+	filefilter "${tables}\\TableOA15_4.tex" "${tables}\\TableOA15_5.tex", from("\BSbegin{document}") to("") replace	
+	filefilter "${tables}\\TableOA15_5.tex" "${tables}\\TableOA15_6.tex", from("\BSdocumentclass[]{article}") to("") replace	
+	filefilter "${tables}\\TableOA15_6.tex" "${tables}\\TableOA15_7.tex", from("\BSsetlength{\BSpdfpagewidth}{8.5in} \BSsetlength{\BSpdfpageheight}{11in}") to("") replace	
+	filefilter "${tables}\\TableOA15_7.tex" "${tables}\\TableOA15_8.tex", from("lab & BE\BS_sample & nonBE\BS_sample & difference \BS\BS ") to("") replace
+	filefilter "${tables}\\TableOA15_8.tex" "${tables}\\TableOA15_9.tex", from("\BShline") to("") replace
+	filefilter "${tables}\\TableOA15_9.tex" "${tables}\\TableOA15_b-fin.tex", from(".000") to("") replace	
+	
+	forvalues i = 1(1)9 {
+		cap erase "${tables}\\TableOA15_`i'.tex"
+	}
+restore
+
+
+
+********************************************************************************	
+di "ISOLATE COUNTRIES WITH LOW CORRELATION BETWEEN ENVIRONMENTAL LAWS AND INSTRUMENTS (TABLE OA16)"
+********************************************************************************
+** Isolate: Bulgaria, Colombia, Costa Rica, Hungary, Morocco, and Thailand
+
+use "$data\2_Interim files\country_cleaned.dta", clear
+
+egen idd=group(country)
+tab country if idd==7 | idd==11 | idd==12 | idd==21 | idd==31 | idd==43
+
+*** Column correlations 
+preserve
+corr dom_st_lawpol entrybarriers treated_stock cur100
+matrix define C = r(C)
+drop _all
+svmat double C, names(col)
+matrix drop C
+gen 	lab = ""
+replace lab = "Number of green laws and regulations up to this point" if _n==1 	// dom_st_lawpol
+replace lab = "Entry barriers" if _n==2 										// entrybarriers
+replace lab = "Equity market liberalization" if _n==3 						 	// treated_stock
+replace lab = "Current account liberalization" if _n==4 						// cur100
+save "${tables}\corrOA15_1.dta", replace
+restore
+
+*** Column 2 correlations
+preserve
+corr dom_st_lawpol entrybarriers treated_stock cur100 /// 
+	if idd!=7 & idd!=11 & idd!=12 & idd!=21 & idd!=31 & idd!=43
+matrix define C = r(C)
+drop _all
+svmat double C, names(col)
+matrix drop C
+gen 	lab = ""
+replace lab = "Number of green laws and regulations up to this point" if _n==1 	// dom_st_lawpol
+replace lab = "Entry barriers" if _n==2 										// entrybarriers
+replace lab = "Equity market liberalization" if _n==3 						 	// treated_stock
+replace lab = "Current account liberalization" if _n==4 						// cur100
+save "${tables}\corrOA15_2.dta", replace
+restore
+
+*** Panel A columns 1 and 2 
+preserve
+use "${tables}\corrOA15_1.dta", clear
+keep dom_st_lawpol lab
+order lab, first
+ren dom_st_lawpol full_sample
+merge 1:1 lab using "${tables}\corrOA15_2.dta"
+keep lab full_sample dom_st_lawpol
+ren dom_st_lawpol sub_sample
+
+gen 	sort = 1 
+replace sort = 2 if lab == "Entry barriers" 
+replace sort = 3 if lab == "Equity market liberalization"
+replace sort = 4 if lab == "Current account liberalization"
+sort sort
+
+drop sort
+
+drop if full_sample==1 
+cd "$tables"
+dataout, save(TableOA16_1) tex replace dec(2)
+
+
+	filefilter "${tables}\\TableOA16_1.tex" "${tables}\\TableOA16_2.tex", from("\BSend{document}") to("") replace	
+	filefilter "${tables}\\TableOA16_2.tex" "${tables}\\TableOA16_3.tex", from("\BSend{tabular}") to("") replace	
+	filefilter "${tables}\\TableOA16_3.tex" "${tables}\\TableOA16_4.tex", from("\BSbegin{tabular}{lcc} \BShline") to("") replace	
+	filefilter "${tables}\\TableOA16_4.tex" "${tables}\\TableOA16_5.tex", from("\BSbegin{document}") to("") replace	
+	filefilter "${tables}\\TableOA16_5.tex" "${tables}\\TableOA16_6.tex", from("\BSdocumentclass[]{article}") to("") replace	
+	filefilter "${tables}\\TableOA16_6.tex" "${tables}\\TableOA16_7.tex", from("\BSsetlength{\BSpdfpagewidth}{8.5in} \BSsetlength{\BSpdfpageheight}{11in}") to("") replace	
+	filefilter "${tables}\\TableOA16_7.tex" "${tables}\\TableOA16_8.tex", from("lab & full\BS_sample & sub\BS_sample \BS\BS \BShline") to("") replace
+	filefilter "${tables}\\TableOA16_8.tex" "${tables}\\TableOA16_a-fin.tex", from("\BShline") to("") replace	
+	
+	forvalues i = 1(1)8 {
+		cap erase "${tables}\\TableOA16_`i'.tex"
+	}
+restore	
+
+cap erase "${tables}\corrOA16_1.dta"
+cap erase "${tables}\corrOA16_2.dta"
+
+*** Panel B
+
+* First stages and R2
+label var fin_dev1_l1 "Financial development"
+label var fin_str2_l1 "Equity share"
+									
+xi: ivreg2 cotwo_total_per_gdp 	(fin_dev1_l1 fin_str2_l1=entrybarriers_l2 treated_stock_l2 cur100_l2) /// 
+										log_gdp_per_cap_l1 log_gdp_per_cap_sq_l1 pop_mil_l1 recession_l1 dom_st_lawpol_l1 i.country i.year /// 
+										if idd!=7 & idd!=11 & idd!=12 & idd!=21 & idd!=31 & idd!=43
+estimates store reg2
+
+estadd local ctrycontrols "Yes":  reg2
+estadd local ctryFE "Yes":  reg2
+estadd local yrFE "Yes":  reg2
+
+noi esttab  reg2 using "${tables}\\TableOA16_b-fin.tex", replace ///
+	keep(fin_dev1_l1 fin_str2_l1) ///
+	b(%9.4f) se(%9.4f) f nonum nolines ///
+	stats(ctrycontrols ctryFE yrFE r2 N idstat idp cdf j jp, fmt(0 0 0 2 %15.0fc 3 3 3 3 3) /// 
+	labels("\hline \addlinespace[1ex] Country controls" "Country FE" "Year FE" /// 
+		   "\hline \addlinespace[1ex] R-squared" "No. Observations" /// 
+		   "\hline \addlinespace[1ex] Kleibergen-Paap LM statistic" "\textit{p}-value" "F statistic" "Hansen J statistic" "\textit{p}-value")) ///
+	label nomtitles style(tex) nogaps nonotes star(* .1 ** .05 *** .01)	
+	
+		
+********************************************************************************	
+di "PROPERTIES OF INITIAL AND PROPENSITY SCORE-MATCHED SAMPLE (TABLE OA17)"
+********************************************************************************
+use "$data\2_Interim files\country_sector_cleaned.dta", clear
+
+sort industry, stable
+drop if industry[_n]==industry[_n-1]
+
+keep cotwo_intensity_wd rd tang_2 sued_share
+*round to two decimals
+lab var cotwo_intensity_wd "Carbon intensity"
+lab var sued_share "Litigation risk"
+lab var rd "R\&D intensity"
+lab var tang_2 "Asset tangibility"
+
+eststo clear
+estpost correlate ///
+		cotwo_intensity_wd rd tang_2 sued_share ///
+		, matrix listwise
+esttab using "${tables}\TableOA17.tex", unstack b(2) replace f ///
+style(tex) nonotes nomtitle nonum nostar label compress nogaps noobs not
+
+filefilter "${tables}\\TableOA17.tex" "${tables}\\TableOA17-fin.tex", from(" &Carbon intensity&R\BS&D intensity&Asset tangibility&Litigation risk\BS\BS") to("") replace
+
+cap erase "${tables}\\TableOA17.tex"	
+	
+log close

28/replication_package/1_code/6 Charts Online Appendix.do

@@ -0,0 +1,41 @@
+ log using "${logs}\6 Charts Online Appendix.txt", replace 
+
+********************************************************************************	
+di "SUMMARY STATISTICS (OA CHART 1)"
+********************************************************************************
+
+use "$data\2_Interim files\orbis_cleaned.dta", clear
+
+forval x=1995(1)2018 {
+gen dummy_`x'=0
+replace dummy_`x'=1 if year==`x'
+gen dummy_`x'_cotwo_ass=dummy_`x'*cotwo_ass
+gen dummy_`x'_cotwo_sal=dummy_`x'*cotwo_sal
+}
+
+* emissions
+
+reghdfe log_emissions_per_assets dummy_2006_cotwo_sal dummy_2007_cotwo_sal dummy_2008_cotwo_sal dummy_2009_cotwo_sal dummy_2010_cotwo_sal if country=="BE" & year>=2005 & year<=2010, a(firmid year)
+
+regsave dummy_2006_cotwo_sal dummy_2007_cotwo_sal dummy_2008_cotwo_sal dummy_2009_cotwo_sal dummy_2010_cotwo_sal using "$tables/OA_Chart1", replace
+
+use "$tables/OA_Chart1", clear
+keep var coef stderr
+gen year=.
+
+foreach i of num 2006/2010 {
+    replace year=`i' if strpos(var, "`i'")
+}
+
+drop var
+gen ci90=1.66*stderr
+
+label var coef "Point estimate"
+
+* domestic loans
+
+serrbar coef ci90 year, xlabel(2005 "-1" 2006 "0" 2007 "1" 2008 "2" 2009 "3" 2010 "4") title ("Notional interest deduction and log emissions")
+
+graph export "${figures}/ChartOA1.png", replace height(1600)
+
+log close

28/replication_package/Main tables and figures.tex

@@ -0,0 +1,1007 @@
+\documentclass[10pt]{article}
+
+\usepackage[capposition=top]{floatrow}
+\usepackage[section]{placeins}
+
+\usepackage{titlesec}
+\titleformat*{\subsection}{\normalsize\bfseries}
+\titleformat*{\subsubsection}{\normalsize\itshape}
+\usepackage{graphicx}
+\usepackage{booktabs} % making tables: includes commands \midrule etc.
+
+\usepackage{longtable}
+ \usepackage{ltxtable}
+
+\usepackage{tabularx}
+	\newcolumntype{C}{>{\centering\arraybackslash}X}
+	\newcolumntype{L}{>{\raggedright\arraybackslash}X}
+		
+\usepackage{array}
+	\newcolumntype{L}[1]{>{\raggedright\let\newline\\\arraybackslash\hspace{0pt}}m{#1}}
+	\newcolumntype{P}[1]{>{\centering\arraybackslash}p{#1}} % centres the text in columns horizontally
+	\newcolumntype{M}[1]{>{\centering\arraybackslash}m{#1}} % centres the text in columns vertically
+
+\usepackage{indentfirst}
+\usepackage[top=1in, bottom=1in, left=1in, right=1in]{geometry}
+\usepackage{multirow}
+\usepackage{pdflscape}
+\usepackage{caption}  % control spacing between table and table label
+\usepackage{setspace} % control the amount of black space between lines using ``//''
+\usepackage{caption}
+\usepackage{subcaption}
+\usepackage[flushmargin,ragged]{footmisc}
+\usepackage[toc,page]{appendix}
+\usepackage{ragged2e}
+% Note/Source/Text after Tables
+\newcommand{\Figtext}[1]{%
+	\begin{tablenotes}[para,flushleft]
+\hspace{10pt}
+\hangindent=1.75em
+#1
+\end{tablenotes}
+}
+
+\renewcommand{\figurename}{Chart}
+
+
+\newcommand{\filepath}{J:/5. Research Pillar (RP)/Working Files/Vitaliia/Finance and Green Growth for Ralph/DeHaas_Popov_Submission_package/3_ReplicationFiles/}
+
+
+\ExplSyntaxOn % providing \expandableinput
+\cs_new:Npn \expandableinput #1
+  { \use:c { @@input } { \filepath #1} }
+\ExplSyntaxOff
+
+
+
+
+\begin{document}
+\setcounter{page}{45}
+\def\sym#1{\ifmmode^{#1}\else\(^{#1}\)\fi}
+
+
+%Table 1
+\clearpage
+\begin{landscape}
+\begin{table}[]
+\centering
+\captionsetup{font=large}
+\captionof{table}{Sectoral benchmarks}
+\label{table1}
+\begin{tabular}{ L{1.5cm} L{9cm} P{1.75cm} P{1.75cm} P{1.75cm} P{1.75cm} }
+\midrule
+ISIC code & Sector name & CO$_{2}$ intensity & R\&D intensity & Asset tangibility & Litigation risk \\
+\midrule
+\expandableinput{3_tables/Table1-fin.tex}
+\multicolumn{6}{p{19.5cm}}{\footnotesize \textit{Notes}: This table summarises, by sector, the main benchmarks used in the paper. `CO$_{2}$ intensity' denotes the average value, over the entire sample period, of each sector's CO$_{2}$ emissions per value added. For manufacturing industries CO$_{2}$ emissions per value added is calculated for all countries, while for non-manufacturing industries CO$_{2}$ emissions per value is calculated for OECD countries only. `R\&D intensity' denotes the industry-median value of R\&D investment over total assets for mature listed firms, from Compustat North America. `Asset tangibility' denotes the share of tangible assets out of total assets for mature listed firms, from Compustat North America. `Litigation risk' denotes the total penalties paid by a sector in the U.S. over the period 2000-2014 (following both administrative and judicial legal cases) as a share of the sector's value added over the same period, from the Environmental Protection Agency (EPA) Enforcement and Compliance History Online (ECHO) data set (data on penalties) and WIOD (data on value added).}\\
+\end{tabular}
+\end{table}
+\end{landscape}
+
+
+
+
+% Table 2
+\clearpage
+\begin{table}[]
+	\centering
+	\footnotesize
+	\captionsetup{font=large}
+	\caption{Finance and aggregate carbon emissions}
+	\label{table2}
+\begin{tabularx}{16cm}{p{4.75cm}CCCCC}
+\midrule
+
+                                                        \\
+
+& CO$_{2}$ emissions/GDP & Financial development & Equity share & CO$_{2}$ emissions/GDP &  CO$_{2}$ emissions/GDP \\
+\midrule
+                                     & \multicolumn{1}{c}{OLS}    & \multicolumn{3}{c}{2SLS}                 & \multicolumn{1}{c}{GMM}            \\
+                                     \cmidrule(l{.5em}){2-2} \cmidrule(l{.75em}){3-5} \cmidrule(l{.5em}){6-6}
+                                     &             & \multicolumn{2}{c}{First stage}  & \multicolumn{1}{c}{Second stage}  &              \\
+                                     \cmidrule(l{.5em}){3-4}  \cmidrule(l{.5em}){5-5}
+                                     & (1)        & (2)        & (3)         & (4)        & (5) \\
+                                     \midrule
+\expandableinput{3_tables/Table2-fin.tex}
+\midrule
+\multicolumn{6}{p{15.5cm}}{\footnotesize \textit{Notes}: This table reports estimates from OLS, 2SLS, and GMM regressions. The dependent variable is  ‘CO$_{2}$  emissions/GDP’, which denotes aggregate emissions of carbon dioxide, in kilograms, divided by GDP. ‘Financial development’ denotes the sum of credit to the private sector and the value of all listed stocks, divided by the country’s GDP. ‘Equity share’ denotes the value of all listed stocks, divided by the sum of credit to the private sector and the value of all listed stocks. Appendix Table A1 contains all variable definitions. Country-specific data on emissions come from IEA, country-specific data on value added is from UNIDO. All right-hand side variables are 1-period lagged. Columns (2) and (3) report the first stages, and column (4) report the second stages of the 2SLS regressions. ‘Financial development’ and ‘Equity share’ are instrumented using the following three instruments. ‘Entry barriers’ is an index of pro-competitive banking regulation, ranging from 0 (least liberalised) to 3 (most liberalised), from Abiad et al. (2008). ‘Equity market liberalisation’ is a dummy variable equal to one if a country’s equity markets are open to foreign portfolio investment, from Bekaert et al. (2005). ‘Current account liberalisation’ is an index of current account liberalisation, ranging from 0 (least liberalised) to 100 (most liberalised), from Quinn and Toyoda (2008). All indices have been updated until 2015. All instruments are 2-period lagged. Column (5) shows GMM regressions with one lag for the dependent variable. The sample period is 1990–2015. All regressions include fixed effects as specified. Robust standard errors are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}\\
+\end{tabularx}
+\end{table}
+
+
+
+% Table 3
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions }
+	\label{table3}
+\begin{tabularx}{16cm}{p{6cm}CCC}
+\midrule                   
+                                        &  \multicolumn{3}{c}{CO$_{2}$ emissions/GDP} \\
+                                      \cmidrule(l{.75em}){2-4}
+                                              & OLS          & 2SLS         & GMM         \\
+                                        \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                        & (1)           & (2)          & (3)                    \\
+                                        \midrule
+\expandableinput{3_tables/Table3-fin.tex}
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS, 2SLS, and GMM regressions. Appendix Table A1 contains all variable definitions. Sector-specific data on emissions comes from IEA, on value added from UNIDO. In column (2), the interactions of ‘CO$_{2}$ intensity’ with ‘Financial development’ and ‘Equity share’ are instrumented using interactions of ‘CO$_{2}$ intensity’ with ‘Entry barriers’, ‘Equity market liberalisation’, and ‘Current account liberalisation’. Column (3) presents GMM regressions with one lag for the dependent variable. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table 4
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and cross-sector reallocation}
+	\label{table4}
+\begin{tabularx}{16cm}{p{6.5cm}CCC}
+\midrule
+                                        & \multicolumn{3}{c}{Growth in value added} \\
+                                        \cmidrule(l{.75em}){2-4} 
+                                        & OLS          & 2SLS         & GMM         \\
+                                        \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                        & (1)          & (2)          & (3)         \\
+                                        \midrule
+\expandableinput{3_tables/Table4-fin.tex}
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS, 2SLS, and GMM regressions. Appendix Table A1 contains all variable definitions. The dependent variable is ‘Growth in value added’, which denotes the sector’s annual growth in value added. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. In column (2), the interactions of ‘CO$_{2}$ intensity’ with ‘Financial development’ and ‘Equity share’ are instrumented using interactions of ‘CO$_{2}$ intensity’ with ‘Entry barriers’, ‘Equity market liberalisation’, and ‘Current account liberalisation’. Column (3) presents a GMM regression with one lag for the dependent variable. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+% Table 5
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Within-sector efficiency}
+	\label{table5}
+\begin{tabularx}{16cm}{p{6.5cm}CCC}
+\midrule
+                                        & \multicolumn{3}{c}{CO$_{2}$ emissions/value added} \\
+                                        \cmidrule(l{.75em}){2-4} 
+                                        & OLS             & 2SLS           & GMM            \\
+                                        \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4} 
+                                        & (1)             & (2)            & (3)            \\
+                                        \midrule
+\expandableinput{3_tables/Table5-fin.tex}
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS, 2SLS, and GMM regressions. The dependent variable is ‘CO$_{2}$ emissions/value added’, which denotes the sector’s emissions of carbon dioxide, in kilograms, divided by value added. Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. In column (2), the interactions of ‘CO$_{2}$ intensity’ with ‘Financial development’ and ‘Equity share’ are instrumented using interactions of ‘CO$_{2}$ intensity’ with ‘Entry barriers’, ‘Equity market liberalisation’, and ‘Current account liberalisation’. Column (3) presents a GMM regression with one lag for the dependent variable. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.} \\ 
+\end{tabularx}
+\end{table}
+
+
+% Table 6
+\clearpage
+\begin{table}[]
+	\centering
+	\footnotesize
+	\captionsetup{font=large}
+	\caption{Finance and green innovation}
+	\label{table6A}
+\begin{tabularx}{16.5cm}{p{5.1cm}CCCC}
+\midrule
+ &
+  Green patents/GDP (all) &
+  Green patents/GDP (excl. transport and waste) &
+  Green patents/GDP (industrial production) &
+  Green patents/GDP (industrial production), OECD \\
+  \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4} \cmidrule(l{.75em}){5-5}
+\\
+ Panel A. OLS                                         & (1)       & (2)       & (3)       & (4)           \\
+\midrule
+\expandableinput{3_tables/Table6a-fin.tex}
+\midrule
+\\
+  Panel B. 2SLS                                        & (1)       & (2)       & (3)       & (4)         \\
+\midrule
+\expandableinput{3_tables/Table6b-fin.tex}
+\midrule
+\\
+Panel C. GMM                                          & (1)       & (2)       & (3)       & (4)         \\
+\midrule
+\expandableinput{3_tables/Table6c-fin.tex}
+\midrule
+\multicolumn{5}{p{16cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS (Panel A), 2SLS (Panel B), and GMM regressions (Panel C). The dependent variable is the number of green patents in a country-sector-year, divided by GDP in billions (column (1)); the number of patents in the most climate-change-intensive technologies in a country-sector-year, excluding patents related to transportation and to waste water treatment and waste management, divided by GDP in billions (column (2)); and the number of patents intended to increase the energy efficiency of industrial production processes in a country-sector-year, divided by GDP in billions in the full sample of countries (column (3)) and focusing on OECD economies (column(4)). Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA,  sector-specific data on value added is from UNIDO, on patents from PATSTAT. In Panel B, the interactions of ‘CO$_{2}$ intensity’ with ‘Financial development’ and ‘Equity share’ are instrumented using interactions of ‘CO$_{2}$ intensity’ with ‘Entry barriers’, ‘Equity market liberalisation’, and ‘Current account liberalisation’. Panel C presents GMM regressions with one lag for the dependent variable.  The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table 7 A & B
+\clearpage
+
+\begin{table}[]
+\centering
+\captionsetup{font=large}
+\caption{Finance and carbon emissions: Firm-level evidence}
+\label{table7A}
+\begin{tabularx}{16cm}{p{4cm}CCC}
+\cmidrule(l{.75em}){1-4}
+Panel A. Equity share \\
+\cmidrule(l{.75em}){1-4}
+                     	& \multicolumn{3}{c}{Equity ratio}  \\
+	            	 \cmidrule(l{.75em}){2-4}
+	 		& Belgium & Belgium vs. neighbors (non-matched sample) & Belgium vs. neighbors (matched sample) \\
+	 		 \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                    	 & (1)       & (2)       & (3)        \\
+                    	\cmidrule(l{.75em}){1-4}
+\expandableinput{3_tables/Table7a-fin.tex}
+\midrule
+\multicolumn{3}{l}{\textit{Table 7 is continued on the next page.}} \\
+\end{tabularx}
+\end{table}
+
+
+
+\clearpage
+\begin{landscape}
+\begin{table}[]
+\centering
+\footnotesize
+\captionsetup{font=large}
+\caption*{Tabel 7 cont.: Finance and carbon emissions: Firm-level evidence}
+\label{table7B}
+\begin{tabularx}{24cm}{p{5.5cm}CCCCCC}
+\midrule
+Panel B. Carbon emissions \\
+
+                                      & \multicolumn{3}{c}{CO$_{2}$ emissions/sales} & \multicolumn{3}{c}{CO$_{2}$ emissions/assets} \\
+                                       \cmidrule(l{.75em}){2-4}  \cmidrule(l{.75em}){5-7}
+ &
+  Belgium &
+  Belgium vs. neighbors  (non-matched sample) &
+  Belgium vs. neighbors (matched sample) &
+  Belgium &
+  Belgium vs. neighbors (non-matched sample) &
+  Belgium vs. neighbors (matched sample) \\
+  \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+  \cmidrule(l{.75em}){5-5}  \cmidrule(l{.75em}){6-6} \cmidrule(l{.75em}){7-7}
+                                      & (1)            & (2)          & (3)         & (4)           & (5)           & (6)          \\
+                                      \midrule
+  \expandableinput{3_tables/Table7b-fin.tex}                                                                       
+\midrule        
+\multicolumn{7}{p{23.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS and difference-in-differences regressions. In Panel A, the dependent variable is the ratio of the firm's shareholder funds to total current plus non-current liabilities. In Panel B, the dependent variable is the log of the firm’s emissions of carbon dioxide equivalent, in kilograms, divided by the value of the firm’s total sales (columns (1)–(3)) or divided by the value of the firm’s total assets (columns (4)–(6)). ‘Post 2006’ is a dummy variable equal to one in 2007 and thereafter. Belgium introduced an allowance for corporate equity (ACE) in 2006. ‘Belgium’ is a dummy variable equal to one if the firm is domiciled in Belgium. ‘CO$_{2}$ intensity’ denotes the average value, over the entire sample period, of each sector’s CO$_{2}$ emissions per sales, for all countries in the sample. Firm-specific data come from Orbis and Bloomberg. The sample period is 2001–2010 (Panel A) and 2005–2010 (Panel B). All regressions include fixed effects as specified. Standard errors are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.} \\
+\end{tabularx}
+\end{table}
+\end{landscape}
+
+
+
+
+
+% Table 8 
+\clearpage
+\begin{landscape}
+\begin{table}[]
+\centering
+\captionsetup{font=large}
+\caption{Finance, imports, and carbon leakage}
+\label{table9}
+\begin{tabularx}{20cm}{p{6cm}CCCCCC}
+\midrule
+                                        & \multicolumn{6}{c}{CO$_{2}$ emissions from imports/total GDP}                          \\
+                                        \cmidrule(l{.75em}){2-7}
+                                        & Total     & Households & Sector   (same) & Sector   (other) & GFCF      & Government \\
+                                          \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+  \cmidrule(l{.75em}){5-5}  \cmidrule(l{.75em}){6-6}  \cmidrule(l{.75em}){7-7} 
+                                        & (1)       & (2)        & (3)            & (4)             & (5)       & (6)        \\
+                                        \midrule
+\expandableinput{3_tables/Table8-fin.tex} 
+\midrule
+\multicolumn{7}{p{19.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from an OLS regressions. The dependent variable is the total emissions of carbon dioxide associated with the production of foreign-produced goods purchased by the total economy (column (1)), by households (column (2)), by the same sector (column (3)), by other industries (column (4)), for the purpose of gross fixed capital formation (column (5)), and by the government (column (6)), in tons, divided by population. Appendix Table A1 contains all variable definitions. Import data come from WIOD, sector-specific data on emissions come from IEA,  sector-specific data on value added is from UNIDO. The sample includes all sectors and comprises the period 1995-2009. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.} \\
+\end{tabularx}
+\end{table}
+\end{landscape}
+ 
+
+
+
+% Set the Table and figure counters to 0 and include A 
+%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
+\setcounter{table}{0}
+\renewcommand{\thetable}{A\arabic{table}}
+%\renewcommand{\thetable}{Appendix Table \arabic{table}}
+
+%\setcounter{figure}{0}
+%\renewcommand{\thefigure}{A\arabic{figure}}
+%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
+\clearpage
+\section*{Appendix}
+
+% Table A1
+\begin{table}[ht!]
+	\centering
+	\captionsetup{font=large}
+	\captionof{table}{Variable definitions and sources}
+	\label{tableA1}
+{\setlength{\extrarowheight}{-5pt}	
+\begin{tabular}{ L{3.5cm}  L{9cm} L{2.75cm}}
+\midrule
+Variable                                             & Definition                                                                          & Data source\\
+\midrule
+\multicolumn{3}{l}{\textit{Sector-country level data}}                                                         \\
+\midrule      
+CO$_{2}$  emissions/GDP & Aggregate/sector-specific emissions of carbon dioxide, in tons, divided by the country's GDP. & IEA \\
+\addlinespace
+CO$_{2}$ emissions/value added & Aggregate/sector-specific emissions of carbon dioxide, in kilograms, divided by the sector's value added. & IEA; UNIDO/STAN \\
+\addlinespace
+CO$_{2}$ intensity & Average value, over the entire sample period, of a sector's CO$_{2}$ emissions per value added. & IEA; UNIDO/STAN \\
+\addlinespace
+CO$_{2}$ intensity (contemporaneous) & Average value, for each year, of each sector's CO$_{2}$ emissions per value added. &  IEA; UNIDO/STAN \\
+\addlinespace
+CO$_{2}$ intensity (US) & Average value, over the entire sample period, of each sector's CO$_{2}$ emissions per value added in the US. & IEA; UNIDO/STAN \\
+\addlinespace
+Emissions from imports & It is defined as total carbon emissions from imported goods, for 6 individual importer types, per GDP. & WIOD  \\
+\addlinespace
+Sector share & Share in value added of the sector out of the whole economy.  & UNIDO/STAN \\
+\addlinespace
+Growth in value added & Sector-specific growth in value added. & UNIDO/STAN \\
+\addlinespace
+Green patents/GDP & Number of green patents in a country-sector-year, per 1 billion GDP. & PATSTAT; WDI \\
+\addlinespace
+Green patents/GDP (excl. transport and waste) & Number of patents in the most climate-change-intensive technologies in a country-sector-year, per 1 billion GDP, excluding patents related to transportation and to waste water treatment and waste management. & PATSTAT; WDI \\
+\addlinespace
+Green patents/GDP (industrial production) & Number of patents related to inventions to increase the energy efficiency of industrial production or processing of goods in a country-sector-year, per 1 billion GDP. & PATSTAT; WDI \\
+\midrule
+\textit{Sector level data}                                                    &        &             \\
+\midrule   
+\addlinespace
+R\&D intensity &  Industry-median value of R\&D investment over total assets for mature listed firms, Compustat N. America. & Laeven et al. (2006) \\
+\addlinespace
+Litigation risk & Total penalties paid by a sector in the U.S. during 2000-2014 (following both administrative and judicial legal cases) as a share of the sector's value added over the same period. & EPA and ECHO; WIOD \\ 
+\addlinespace 
+Asset tangibility & Share of tangible assets out of total assets for mature listed firms, from Compustat N. America. & Braun (2003)  \\
+\addlinespace
+External dependence  & Share of capital investment financed with sources other than retained earnings, for Compustat firms during 1990--2000. & Compustat \\
+\midrule
+
+\multicolumn{3}{p{16cm}}{\footnotesize Continued on next page.} \\ 
+
+\end{tabular}
+}
+\end{table}
+
+
+% Table A1 continued
+\begin{table}[!htbp]
+	\centering
+	\captionsetup{font=normal}
+	\captionof*{table}{Table A1 cont.: Variable definitions and sources}
+	\label{tableA1cont}
+{\setlength{\extrarowheight}{-5pt}
+\begin{tabular}{ L{3.5cm}  L{9cm} L{2.75cm}}
+\midrule
+Variable                                             & Definition                                                                          & Data source\\
+\midrule
+Fuel subsidies & Difference between the observed price of fuel and the benchmark price of fuel for a particular country-sector, time-invariant. & Schweiger and Stepanov (2022) \\
+\addlinespace
+ Transportation costs & Industry fixed effects coefficients from a regression of firm-specific transportation costs on distance and distance squared. & Ederington et al. (2005)  \\ 
+\midrule
+\textit{Country level data}                                                    &        &             \\
+\midrule      
+Population, GDP per capita  &   Country’s population, in billions of inhabitants, and per capita GDP. &  WDI  \\
+\addlinespace
+Recession & Dummy variable equal to 1 if the country experiences negative GDP growth. & WDI \\
+\addlinespace
+No. environmental laws and policies & Number of laws and policies related to the environment enacted until the current year in the country.  & IEA policies database   \\
+\addlinespace
+Financial development (with bonds) & Sum of private-sector credit and value of all listed stocks, (and the value of all issued private corporate bonds), divided by the country's GDP. &  Beck et al. (2019)\\
+\addlinespace
+Equity share & Value of all listed stocks, divided by the sum of credit to the private sector and the value of all listed stocks. & Beck et al. (2019)\\
+\addlinespace
+Stock/GDP & One-period lagged ratio of the value of all listed stocks to the country's GDP. & Beck et al. (2019) \\
+\addlinespace 
+Credit/GDP &  One-period lagged ratio of the value of all private-sector credit to the country's GDP. & Beck et al. (2019) \\
+\addlinespace
+Entry barriers & Index of pro-competitive banking regulation, from 0 (least liberalised) to 3 (most liberalised).  & Abiad et al. (2008) \\
+\addlinespace
+Equity market liberalisation & Dummy variable equal to 1 if the country's stock market is open to foreign portfolio investment. &  Bekaert et al. (2005)  \\
+\addlinespace
+Current account liberalisation & Index of current account liberalisation, from 0 (least liberalised) to 100 (most liberalised).  & Quinn and Toyoda (2008)  \\
+\addlinespace
+ Private equity investment & Total private equity investment divided by GDP. & Yearbooks of Invest Europe  \\
+\addlinespace
+Business credit & Credit to private enterprises divided by GDP.  & Bezemer et al. (2020)  \\
+\addlinespace
+Carbon tax & Dummy variable equal to 1 if country has carbon tax or ETS.  & Carbon Tax Center  \\
+\midrule
+\textit{Firm level data}                                                    &        &             \\
+\midrule      
+CO$_{2}$ emissions/sales & Log of the firm's emissions of carbon dioxide, in kilograms, divided by the value of the firm's sales. & ETS; Orbis \\
+\addlinespace
+CO$_{2}$ emissions/assets & Log of the firm's emissions of carbon dioxide, in kilograms, divided by the value of the firm's assets. & ETS; Orbis \\
+\addlinespace
+Equity ratio & Ratio of the firm's shareholder funds to total current plus non-current liabilities & Orbis \\
+\midrule
+
+\multicolumn{3}{p{16cm}}{\footnotesize \textit{Notes}: This table provides definitions and data sources for all variables used in the paper. 
+UNIDO: United Nations Industrial Development Organization. 
+OECD: Organisation for Economic Co-operation and Development.
+WDI: World Development Indicators. 
+IEA: International Energy Agency.
+PATSTAT: European Patent Office (EPO) Worldwide Patent Statistical Database.
+STAN: STAN data set for structural analysis (OECD). 
+EPA and ECHO: Environmental Protection Agency (EPA)'s Enforcement and Compliance History Online (ECHO) data set. 
+WIOD: World Input-Output Database.
+ETS: EU Emissions Trading System.
+Orbis: Orbis - Bureau van Dijk.} \\ 
+\end{tabular}
+}
+\end{table}
+
+% \hspace*{2mm}(excl. transport and waste)  
+
+%Table A2
+\begin{table}[ht]
+	\centering
+	\footnotesize
+	\captionsetup{font=large}
+	\captionof{table}{Summary statistics}
+	\label{tableA2}
+\begin{tabularx}{16cm}{p{7cm}CCCCC}
+\midrule            
+Variable                                                                  & Mean   & Median & St. dev. & Min    & Max     \\
+\midrule
+\\
+\textit{Country-level}                                                    &        &        &          &          &           \\
+\midrule                                                         
+\expandableinput{3_tables/Table_TA2_country-fin.tex}
+\\
+%\midrule
+\textit{Sector-level (UNIDO)}                                                    &        &        &          &          &           \\
+\midrule       
+\expandableinput{3_tables/Table_TA2_industry_UNIDO-fin.tex}
+\\
+%\midrule
+\textit{Sector-level (OECD)}                                                     &        &        &          &          &           \\
+\midrule           
+\expandableinput{3_tables/Table_TA2_industry_OECD-fin.tex}
+\\
+%\midrule
+\textit{Firm-level (Orbis and ETS)}                                                     &        &        &          &          &           \\
+\midrule
+\expandableinput{3_tables/Table_TA2_orbis-fin.tex}
+%\midrule
+\multicolumn{6}{p{15.5cm}}{\footnotesize \textit{Notes}: This table summarises the data used in the paper. All variable definitions are provided in Table A1.}\\
+
+% ‘CO2 emissions per capita’ denotes aggregate or sector-specific emissions of carbon dioxide, in tons, divided by the country’s population. ‘CO2 emissions per GDP’ denotes aggregate or sector-specific emissions of carbon dioxide, in kilograms, divided by the country’s GDP. ‘Financial development’ denotes the sum of credit to the private sector and the value of all listed stocks, divided by the country’s GDP, 1-perod lagged. ‘Equity share’ denotes the value of all listed stocks, divided by the sum of credit to the private sector and the value of all listed stocks, 1-perod lagged. ‘GDP per capita’ denotes the country’s per-capita GDP. ‘Population’ denotes the country’s population, in billions of inhabitants. ‘Recession’ is a dummy variable equal to one if the country is experiencing negative GDP growth. ‘\# environmental laws and policies’ is the number of laws and policies related to the environment enacted until the current year in the country, from the EBRD. ‘Entry barriers’ is an index of pro-competitive banking regulation, from 0 (least liberalised) to 3 (most liberalised), from Abiad et al. (2008). ‘Equity market liberalisation’ is a dummy variable equal to one after a country’s equity markets are open to foreign portfolio investment, based on Bekaert et al. (2005). ‘Current account liberalisation’ is an index of current account liberalisation, from 0 (least liberalised) to 100 (most liberalised), from Quinn and Toyoda (2008). ‘Capital account liberalisation’ is an index of capital account liberalisation, from 0 (least liberalised) to 100 (most liberalised), from Quinn and Toyoda (2008). All indices have been updated until 2015. ‘CO2 emissions per value added’ denotes aggregate or sector-specific emissions of carbon dioxide, in tons, divided by the sector’s value added. ‘Growth in value added’ denotes sector-specific growth in value added. ‘Green patents per capita’ denotes the number of green patents in a country-sector-year, per 1 mln. population. ‘Green patents (excl. transport and waste)’ denotes the number of patents in the most climate-change-intensive technologies in a country-sector-year, per 1 mln. population, excluding patents related to transportation and to wastewater treatment and waste management. ‘Green patents (energy intensive sectors)’ denotes the number of patents in energy-intensive sectors in a country-sector-year, per 1 mln. population. ‘Green patents per GDP’ denotes the number of green patents in a country-sector-year, per 1 bln. GDP. ‘Green patents (excl. transport and waste)’ denotes the number of patents in the most climate-change-intensive technologies in a country-sector-year, per 1 bln. GDP, excluding patents related to transportation and to wastewater treatment and waste management. ‘Green patents (energy intensive sectors)’ denotes the number of patents in energy-intensive sectors in a country-sector-year, per 1 bln. GDP. ‘Sector share’ denotes the share in value added of the sector out of the whole economy. ‘Equity share’ denotes the total equity used by the firms divided by total liabilities. ‘CO2 emissions per sales’ denotes the firm’s total emissions of carbon dioxide in kilograms, divided by the value of the firm’s total sales. ‘CO2 emissions per assets’ denotes the firm’s total emissions of carbon dioxide in kilograms, divided by the value of the firm’s total assets.
+\end{tabularx}
+\end{table}
+
+
+\FloatBarrier
+% Chart 1
+\clearpage
+\begin{figure}[!htbp] 
+	\captionsetup{font=large}
+ 	 \captionof{figure}{Global financial development and equity share over time}
+ 	 \label{Chart1}
+ 	 \centering
+ \centerline{\includegraphics[width=\textwidth]{2_figures/Chart1.png}}    
+  \justify
+  {\footnotesize \textit{Notes}: The chart plots population-weighted global ‘Financial development’ and ‘Equity share’ between 1990 and 2015.}
+\end{figure}
+
+
+
+\FloatBarrier
+% Chart 2
+\clearpage
+\begin{figure}[!htbp] 
+	\captionsetup{font=large}
+ 	 \captionof{figure}{CO$_{2}$ emissions/GDP (by sector CO$_{2}$ intensity and by country equity share)}
+	
+	\begin{subfigure}[b]{0.475\textwidth}
+         \centering
+         \includegraphics[width=\textwidth]{2_figures/Chart2_1.png}
+     \end{subfigure}
+\hfill
+     \begin{subfigure}[b]{0.475\textwidth}
+         \centering
+         \includegraphics[width=\textwidth]{2_figures/Chart2_2.png}
+     \end{subfigure}
+\hfill
+\\ [+2ex]
+	\begin{subfigure}[b]{0.475\textwidth}
+         \centering
+         \includegraphics[width=\textwidth]{2_figures/Chart2_3.png}
+     \end{subfigure}
+\hfill
+     \begin{subfigure}[b]{0.475\textwidth}
+         \centering
+         \includegraphics[width=\textwidth]{2_figures/Chart2_4.png}
+     \end{subfigure}
+     
+\floatfoot{{\footnotesize \textit{Notes}: This chart plots the point estimates and 95 percent confidence intervals from a regression of aggregate `CO$_{2}$  emissions/GDP' on country dummies, for industries with below-median CO$_{2}$ intensity in countries with below-median equity share (top left), for industries with below-median CO$_{2}$ intensity in countries with above-median equity share (top right), for industries with above-median CO$_{2}$ intensity in countries with below-median equity share (bottom left), and for industries with above-median CO$_{2}$ intensity in countries with above-median equity share (bottom right).}}
+\end{figure}
+
+
+
+% Set the Table and figure counters to 0 and include A 
+%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
+\setcounter{table}{0}
+\renewcommand{\thetable}{OA\arabic{table}}
+%\renewcommand{\thetable}{Appendix Table \arabic{table}}
+
+\setcounter{figure}{0}
+\renewcommand{\thefigure}{OA\arabic{figure}}
+%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
+
+
+\clearpage
+\section*{Online Appendix}
+\pagenumbering{roman} % resets `page` counter to 1 and specifies roman numerals
+
+% Table OA1
+\begin{table}[ht!]
+	\footnotesize
+	\centering
+	\captionsetup{font=large}
+	\captionof{table}{Main variables by country (1990–2015 averages)}
+	\label{tableOA1}
+\begin{tabularx}{10cm}{p{2.25cm}CCC}
+\midrule
+Country        & Financial  & Equity share & CO$_{2}$/GDP \\
+        &  development & &  \\
+\midrule
+\expandableinput{3_tables/TableOA1-fin.tex}
+\multicolumn{4}{p{9.5cm}}{\footnotesize \textit{Notes}: The table reports summary statistics, by country and for the period 1990–2015, for the main variables of interest. ‘Financial development’ denotes the sum of credit to the private sector and the value of all listed stocks, divided by the country’s GDP. ‘Equity share’ denotes the value of all listed stocks, divided by the sum of credit to the private sector and the value of all listed stocks. ‘CO$_{2}$ emissions/GDP’ denotes aggregate emissions of carbon dioxide, in kilograms, divided by the country’s GDP. }
+
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA2 (old Table 8)
+\clearpage
+\begin{table}[]
+	\centering
+	\footnotesize
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Mechanisms}
+	\label{table8}
+\begin{tabularx}{16cm}{p{6cm}CCC}
+\midrule
+Panel A: Finance and cross-sector reallocation \\
+\midrule
+                                            & \multicolumn{3}{c}{Growth in value added}           \\
+                                            \cmidrule(l{.75em}){2-4}
+                                            & R\&D intensity & Asset tangibility & Litigation risk \\
+                                            \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                            & (1)           & (2)               & (3)             \\
+                                            \midrule
+ \expandableinput{3_tables/TableOA2a-fin.tex} 
+\midrule 
+\\
+Panel B. Finance and within-sector efficiency \\
+\midrule 
+                                            & \multicolumn{3}{c}{CO$_{2}$ emissions per value added}   \\
+                                            \cmidrule(l{.75em}){2-4}
+                                            & R\&D intensity & Asset tangibility & Litigation risk \\
+                                            \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                            & (1)           & (2)               & (3)                   \\
+                                            \midrule
+  \expandableinput{3_tables/TableOA2b-fin.tex} 
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s annual growth in value added (Panel A) or the sector’s emissions of carbon dioxide, in kilograms, per unit of value added (Panel B). Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA,  sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA3
+\clearpage
+\begin{table}[]
+\centering
+\footnotesize
+\captionsetup{font=large}
+\caption{Finance, imports, and carbon leakage: Low- versus high-mobility sectors}
+\label{table12}
+\begin{tabularx}{16cm}{p{5.5cm}CCCCCC}
+\midrule
+\multicolumn{7}{l}{Panel A. Low-mobility (high-transport-cost) sectors}     \\
+\midrule
+& \multicolumn{6}{c}{CO$_{2}$ emissions from imports/total GDP}          \\
+ \cmidrule(l{.75em}){2-7}        
+                                         & Total     & Households & Sector   (same) & Sector   (other) & GFCF     & Government \\
+                                          \cmidrule(l{.75em}){2-2}
+					\cmidrule(l{.75em}){3-3}
+					\cmidrule(l{.75em}){4-4}
+					\cmidrule(l{.75em}){5-5}
+					\cmidrule(l{.75em}){6-6}
+					\cmidrule(l{.75em}){7-7}
+                                        & (1)       & (2)        & (3)            & (4)             & (5)      & (6)        \\
+                                        \midrule                                                                                        
+\expandableinput{3_tables/TableOA3_a-fin.tex}
+\midrule
+\\
+\multicolumn{7}{l}{Panel B. High-mobility (low-transport-cost) sectors}     \\
+\midrule
+& \multicolumn{6}{c}{CO$_{2}$ emissions from imports/total GDP}          \\
+\cmidrule(l{.75em}){2-7}  
+                                        & Total     & Households & Sector   (same) & Sector   (other) & GFCF     & Government \\
+                                         \cmidrule(l{.75em}){2-2}
+					\cmidrule(l{.75em}){3-3}
+					\cmidrule(l{.75em}){4-4}
+					\cmidrule(l{.75em}){5-5}
+					\cmidrule(l{.75em}){6-6}
+					\cmidrule(l{.75em}){7-7}
+                                        & (1)       & (2)        & (3)            & (4)             & (5)      & (6)        \\
+                                        \midrule
+\expandableinput{3_tables/TableOA3_b-fin.tex}
+\midrule
+\multicolumn{7}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is total CO$_{2}$ emissions associated with the production of foreign-produced goods purchased by the total economy (column (1)), by households (column (2)), by the same sector (column (3)), by other industries (column (4)), for the purpose of gross fixed capital formation (column (5)), and by the government (column (6)), in tons, divided by population. Appendix Table A1 contains all variable definitions. Import data come from WIOD. Sector-specific data on emissions come from IEA,  sector-specific data on value added is from UNIDO. The sample includes sectors with above-median transport costs, or low-footloose sectors (Panel A), and sectors with below-median transport costs, or high-footloose sectors (Panel B). All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+
+
+%Table OA4
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: OECD countries}
+	\label{tableA3}
+\begin{tabularx}{16cm}{p{6cm}CCC}
+\midrule
+                        & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+                       \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                          & (1)      & (2)      & (3)            \\
+                          \midrule
+\expandableinput{3_tables/TableOA4-fin.tex}        
+\midrule        
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. Sector-specific data for 33 OECD countries on emissions come from IEA,  sector-specific one on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.} 
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA5
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: 5-year averages}
+	\label{tableA4}
+	\begin{tabularx}{16cm}{p{6cm}CCC}
+\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                        & (1)      & (2)        & (3)              \\
+                                        \midrule
+\expandableinput{3_tables/TableOA5-fin.tex}    
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. All variables are averages over five non-overlapping 5-year intervals (1990–1994, 1995–1999, 2000–2004, 2005–2009, 2010–2015). Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * denote significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+% Table OA6
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Credit markets, stock markets, and sector-level carbon emissions}
+	\label{tableA5}
+\begin{tabularx}{15.5cm}{p{4.5cm}CCC}
+\midrule
+                              & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}		
+                           & (1)      & (2)      & (3)             \\
+\midrule
+\expandableinput{3_tables/TableOA6-fin.tex}  
+\midrule
+\multicolumn{4}{p{15cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). ‘Credit/GDP’ denotes the 1-period lagged ratio of the value of all private credit to the country’s GDP. ‘Stock/GDP’ denotes the 1-period lagged ratio of the value of all listed stocks to the country’s GDP. Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * denote significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+% Table OA7
+\clearpage
+
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: External finance dependence}
+	\label{tableA6}
+	\begin{tabularx}{16cm}{p{7.25cm}CCC}
+		\midrule
+
+
+         & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+          \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+          & (1)                      & (2)                   & (3)                                      \\
+           \midrule
+\expandableinput{3_tables/TableOA7-fin.tex}  
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO, data on external dependency come from Compustat. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+
+
+% Table OA8
+\clearpage
+\begin{table}[]
+	\centering
+	\footnotesize
+	\captionsetup{font=large}
+	\caption{Alternative benchmarks for carbon intensity}
+	\label{tableA7}
+\begin{tabularx}{17cm}{p{8cm}CCC}
+\multicolumn{3}{l}{Panel A. Contemporaneous CO$_{2}$ intensity}                                  \\
+\midrule
+
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                        & (1)                        & (2)                   & (3)                                      \\
+                                        \midrule
+\expandableinput{3_tables/TableOA8_a-fin.tex}  
+\midrule
+\\
+\\
+\multicolumn{3}{l}{Panel B. US CO$_{2}$ intensity}                  \\
+\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                        & (1)                        & (2)                   & (3)                                      \\
+                                        \midrule
+\expandableinput{3_tables/TableOA8_b-fin.tex}  
+\midrule
+\multicolumn{4}{p{16.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. In panel A, ‘CO$_{2}$ intensity (Contemporaneous)’ denotes the average value, for each year, of each sector’s CO$_{2}$ emissions divided by value added, for all countries in the sample. In Panel B, ‘CO$_{2}$ intensity (U.S.)’ denotes the average value, over the entire sample period, of each sector’s CO$_{2}$ emissions divided value added in the U.S. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA9
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Including corporate bonds}
+	\label{tableA8}
+\begin{tabularx}{16cm}{p{7.75cm}CCC}
+\midrule
+& CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                                   & (1)                      & (2)                   & (3)                                   \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA9-fin.tex}  
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * denote significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA10
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Including private equity}
+	\label{tableA9}
+\begin{tabularx}{16cm}{p{6.5cm}CCC}
+\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                                   & (1)                      & (2)                   & (3)                                       \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA10-fin.tex}     
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. ‘Equity share’ in this table denotes the value of all listed stocks and all private equity investment, divided by the sum of credit to the private sector and the value of all listed stocks and all private equity investment, 1-period lagged. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO, and data on private equity from the European Venture Capital Association. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+% Table OA11
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Only corporate credit} 
+	\label{tableA12}
+	\begin{tabularx}{16cm}{p{6cm}CCC}
+	\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}   
+                                                   & (1)                      & (2)                   & (3)                                            \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA11-fin.tex}    
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. ‘Financial development’ here denotes the sum of credit to corporate borrowers and the value of all listed stocks, divided by the country’s GDP, 1-period lagged. ‘Equity share’ here denotes the value of all listed stocks, divided by the sum of credit to corporate borrowers and the value of all listed stocks, 1-period lagged. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO, credit data is from and Bezemer et al. (2020). The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, ** and * indicate significance at the 1, 5 and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+% Table OA12
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Controlling for fuel subsidies}
+	\label{tableA10}
+	\begin{tabularx}{16cm}{p{6cm}CCC}
+	\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}  
+                                                   & (1)                      & (2)                   & (3)                                     \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA12-fin.tex}    
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. ‘Fuel subsidies’ is the difference between the observed price of fuel and the benchmark price of fuel for a particular country-sector. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO, fuel subsidies come from Schweiger and Stepanov (2022). The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA13
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Controlling for environmental laws and policies, carbon taxation, and the ETS}
+	\label{tableA11}
+	\begin{tabularx}{16cm}{p{6cm}CCC}
+	\midrule
+	\multicolumn{4}{l}{Panel A. Environmental laws and policies}\\
+	\midrule
+& CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                                   & (1)                      & (2)                   & (3)                                    \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA13_a-fin.tex}  
+\midrule
+\\
+\multicolumn{4}{l}{Panel B. Carbon tax or ETS} \\
+\midrule
+ & CO$_{2}$ emissions/GDP & Growth in value added & CO$_{2}$ emissions/value added \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+                                                   & (1)                      & (2)                   & (3)                                          \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA13_b-fin.tex}  
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector’s emissions of carbon dioxide, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector’s emissions of carbon dioxide, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. ‘No. environmental laws and policies’ is the number of laws and policies related to the environment enacted until the current year in the country, 1-period lagged. Sector-specific data on emissions come from IEA, sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+
+
+% Table OA14
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Finance and sector-level carbon emissions: Alternative emissions data}
+	\label{tableA13}
+	\begin{tabularx}{16cm}{p{6cm}CC}
+	\midrule
+ & CO$_{2}$ emissions/GDP & All emissions/GDP \\
+\cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3}
+                                                   & (1)                      & (2)              \\
+                                                   \midrule
+\expandableinput{3_tables/TableOA14-fin.tex}  
+
+
+\midrule
+\multicolumn{3}{p{15.5cm}}{\footnotesize \textit{Notes}: The table reports estimates from OLS regressions. The dependent variable is the sector-specific emissions of carbon dioxide from both combustion and non-combustion, in kilograms, divided by GDP (column (1)); the sector’s annual growth in value added (column (2)); and the sector-specific emissions of carbon dioxide from both combustion and non-combustion, in kilograms, divided by value added (column (3)). Appendix Table A1 contains all variable definitions. Sector-specific data on emissions come from Exiobase, sector-specific data on value added is from UNIDO. The sample period is 1990–2015. All regressions include fixed effects as specified. Standard errors clustered at the country-sector level are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+
+% Table OA15
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Properties of initial and propensity score-matched sample used in Table 7}
+	\label{tableA14}
+	\begin{tabularx}{16cm}{p{5cm}CCC}
+	\midrule
+
+\multicolumn{4}{l}{Panel A. Non-matched sample}                  \\
+\midrule
+                                  & BE     & NL, DE, FR \& LU & Difference \\
+                                  \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+\expandableinput{3_tables/TableOA15_a-fin.tex} 
+\midrule
+\\
+\multicolumn{4}{l}{Panel B. Propensity score-matched sample}                  \\
+\midrule
+                                  & BE     & NL, DE, FR \& LU & Difference \\
+                                  \cmidrule(l{.75em}){2-2}  \cmidrule(l{.75em}){3-3} \cmidrule(l{.75em}){4-4}
+\expandableinput{3_tables/TableOA15_b-fin.tex} 
+\midrule
+\multicolumn{4}{p{15.5cm}}{\footnotesize \textit{Notes}: This table reports summary statistics for the non-matched firm sample (Panel A) and for the propensity score-matched firm sample (Panel B) used in Table 7. Column 1 presents average characteristics of ETS firms in Belgium (BE). Column 2 presents average characteristics of ETS firms in the following neighboring countries: the Netherlands (NL), Germany (DE), France (FR), and Luxembourg (LU). Column 3 presents the differences between the averages in columns 1 and 2. Asterisks indicate results from Mann-Whitney \textit{t}-tests where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+
+% Table OA16
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Environmental regulation and financial liberalisation}
+	\label{tableA15}
+	\begin{tabularx}{16.5cm}{p{5.75cm}CC}
+	\midrule
+	 \multicolumn{3}{l}{Panel A} \\
+	\midrule
+
+                                 & \multicolumn{2}{l}{Correlation with variable ‘No. environmental laws and   policies’} \\
+                                 \cmidrule(l{.75em}){2-3}
+                                 & Full sample                                & Reduced sample                         \\
+                                 \cmidrule(l{.75em}){2-2}
+				\cmidrule(l{.75em}){3-3}
+                                 & (1)                                        & (2)                                    \\
+                                 \midrule
+\expandableinput{3_tables/TableOA16_a-fin.tex} 
+\midrule
+\\
+	 \multicolumn{2}{l}{Panel B} \\
+	\midrule
+                                                & CO$_{2}$ emissions/GDP                  \\
+                                  \cmidrule(l{.75em}){2-2}
+				
+                                 & (1)                                                                   \\
+                                 \midrule
+\expandableinput{3_tables/TableOA16_b-fin.tex} 
+\midrule
+\multicolumn{3}{p{16cm}}{\footnotesize \textit{Notes}: This table reports sample correlations (Panel A) and estimates from 2SLS regressions (Panel B). ‘Reduced sample’ excludes Bulgaria, Colombia, Costa Rica, Hungary, Morocco, Poland, and Thailand. ‘No. environmental laws and policies’ is the number of laws and policies related to the environment enacted until the current year in the country. Appendix Table A1 contains all variable definitions. ‘Country controls’ include ‘Log GDP per capita’, ‘Log GDP per capita squared’, ‘Log Population’, and ‘Recession’. In Panel B, ‘Financial Development’ and ‘Equity share’ are instrumented using the three variables in Panel A. In Panel B, all right-hand side variables are 1-period lagged, and all instruments are 2-period lagged. The sample period is 1990–2015. All regressions include fixed effects as specified. Robust standard errors are included in parentheses, where ***, **, and * indicate significance at the 1, 5, and 10 percent statistical level, respectively.}
+\end{tabularx}
+\end{table}
+
+% Table OA17
+\clearpage
+\begin{table}[]
+	\centering
+	\captionsetup{font=large}
+	\caption{Sector benchmark correlations}
+	\label{tableA16}
+	\begin{tabularx}{16cm}{p{6cm}CCCC}
+	\midrule
+                    & Carbon intensity & R\&D intensity & Asset tangibility & Litigation risk \\
+\expandableinput{3_tables/TableOA17-fin.tex} 
+\midrule
+\multicolumn{5}{p{15.5cm}}{\footnotesize \textit{Notes}:  The Table reports simple correlations between sector-level carbon intensity, R\&D intensity, asset tangibility, and litigation risk.}
+\end{tabularx}
+\end{table}
+
+
+\FloatBarrier
+% Chart OA1
+\clearpage
+\begin{figure}[!htbp] 
+	\captionsetup{font=large}
+ 	 \captionof{figure}{Notional interest deduction and log emissions in Belgium}
+ 	 \label{ChartOA1}
+ 	 \centering
+ \centerline{\includegraphics[scale=0.15]{2_figures/ChartOA1.png}}
+ 
+\floatfoot{{\footnotesize \textit{Notes}: This chart presents regression coefficients and 90\% confidence bands for ‘Log (Carbon emissions per assets)’ by Belgian firms after the introduction of a Notional Interest Deduction in 2006 (t=0). The year dummies are interacted with ‘CO$_{2}$ intensity’. The sample period is 2005–2010.}}
+\end{figure}
+
+
+\end{document}
+
+
+
+
+
+

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