Energy efficiency and exporting: Evidence from firm-level data

Abstract

While exporting firms and non-exporters have been compared across several dimensions, empirical comparisons on the basis of environmental performance are relatively few. Moreover, analyzing the environmental implica-tions of firmlevel exports is not trivial due to non-random selection into exporting. In this light, we examine the impact of exporting on firms' energy efficiency by resorting to an instrumental variables strategy based on a differencing approach (Pitt and Rosenzweig, 1990). Utilizing data from Indonesia, we find (i) exporting to reduce the use of fuels (relative to electricity) and (ii) concerns over endogeneity of exporting status to be relevant. While exporting firms and non-exporters have been compared across several dimensions, empirical comparisons on the basis of environmental performance are relatively few. Moreover, analyzing the environmental implications of firm-level exports is not trivial due to non-random selection into exporting. In this light, we examine the impact of exporting on firms' energy efficiency by resorting to an instrumental variables strategy based on a differencing approach (Pitt and Rosenzweig, 1990). Utilizing data from Indonesia, we find (i) exporting to reduce the use of fuels (relative to electricity) and (ii) concerns over endogeneity of exporting status to be relevant. Roy, J. and M. Yasar (2015

Energy efficiency, productivity and exporting: Firm-level evidence in Latin America

“…This relationship, although important and relevant to policymaking, has not been studied in depth. Moreover, environmental impact has been extensively analyzed using data at the level of countries, states, and provinces, but relative few firm-level analyses have been performed (Roy and Yasar, 2015). There are even fewer firm level analyses of the interaction between energy use and trade.…”

Credit Constraints, Energy Management Practices, and Investments in Energy Saving Technologies: German Manufacturing in Close-Up

“…Firms exporting in 2011 have a higher probability of investing in energy saving technologies in 2013. The literature suggests that exporting could increase energy efficiency through different channels like innovation or better management practices (Roy and Yasar, 2015). Furthermore, there is empirical literature suggesting that exporting firms have a higher productivity than non-exporting firms (e. g. Wagner, 2012).…”

Drivers of Energy Efficiency in German Manufacturing: A Firm-Level Stochastic Frontier Analysis

“…There are, however, studies on the relationship between export status and energy use. Roy and Yasar (2015) find that exporting reduces the use of fuels relative to electricity. They analyze a firm-level panel data set for Indonesia.…”

“…He shows that the EU ETS had a significant positive impact on productivity during the first compliance period. Furthermore, Löschel et al (2016) Improved foreign market access could, for example, induce innovation or it may improve management practices (Roy and Yasar, 2015). From a broader perspective, there is literature regarding the relationship between exporting behavior and firm performance or productivity.…”