The brick industry in developing world is a vast, coal burning and polluting industry. Nearly 1,500 billion bricks are produced globally each year where 87% are from Asia. China dominates the world in producing bricks using coal combustion and woods as fuels where Australia placed the last....

We study the connection between corporate taxation and carbon emissions in the US. Counter to optimal taxation of negative externalities, we find that dirty firms pay lower profit taxes. This relationship is driven by dirty firms benefiting disproportionately more from the tax shield of debt,...