Despite sharp reductions in corporate income tax (CIT) rates worldwide, CIT revenues have not fallen dramatically in the last two decades. This paper investigates the recent developments in CIT in the European Union, by taking a closer look at the potential driving forces behind this puzzle....

Using global share ownership data from 2002 to 2021, we find that investors’ aggregate carbon sensitivity, i.e. their tendency to divest from more polluting firms, increases with per capita GDP. Especially investment managers, who invest on behalf of their clients, and investors with longer...