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This paper examines the effects of carbon policies on capital reallocation and emission reductions in the economy, using a model that captures the interactions between green and brown capital, productivity, and emissions. The model is estimated using data from the Swedish manufacturing sector between 1990 and 2015.

This paper examines the effects of carbon policies on capital reallocation and emission reductions in the economy, using a model that captures the interactions between green and brown capital, productivity, and emissions. The model is estimated using data from the Swedish manufacturing sector between 1990 and 2015.