How Green are Exporters?

2015

Energy Economics

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

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Energy efficiency and exporting: Evidence from firm-level data

2015

Energy Economics

“…Before proceeding, a few comments are noteworthy. First, the set of variables in X is motivated by existing contributions such as Batrakova and Davies (2012), Cole et al (2008), and Girma and Hanley (2015). Second, the survey does not contain information on capital stock for 2006.…”

Section: Datamentioning

confidence: 99%

“…Nonetheless, to our knowledge, two studies resort to an IV approach. First, in Girma and Hanley (2015), the instruments are based on the (contemporaneous and lagged values) of the share of imported materials. Although IV speci…cation tests support the validity of these exclusion restrictions, it seems plausible for imported inputs to directly in ‡uence environmental performance.…”

Section: Introductionmentioning

confidence: 99%

Exporting and pollution abatement expenditure: Evidence from firm-level data

Banerjee

Journal of Environmental Economics and Management

2021

The relevance of analyzing whether exporting …rms engage in greater pollution abatement cannot be overemphasized. For instance, the question relates to the possibility of export promotion policies being environmentally bene…cial. In fact, the issue is especially relevant for developing countries typically characterized by ine¤ective environmental regulation. However, despite the signi…cance of the topic, the extant literature examining the environmental consequences of …rm-level trade is skewed toward developed countries. Moreover, the existing contributions rarely attend to concerns over non-random selection into exporting. Accordingly, we employ cross-sectional data across Indonesian …rms as well as a number of novel identi…cation strategies to assess the causal e¤ect of exporting on abatement behavior. Two of the approaches are proposed by Millimet and Tchernis (2013), and entail either minimizing or correcting for endogeneity bias. The remaining methods, attributable to Lewbel (2012) and Klein and Vella (2009), rely on higher moments of the data to obtain exclusion restrictions. While we largely …nd exporting to encourage pollution abatement, the estimated impacts are more pronounced after accounting for selection into exporting.

“…This is essentially equation 6without the selection correction terms. Moreover, in keeping with contributions such as Girma and Hanley (2015), the model depicting the determinants of exporting status is given by…”

Section: Lewbel (2012) Estimatormentioning

confidence: 99%

Exporting and Pollution Abatement Expenditure: Evidence from Firm-Level Data

Banerjee

2020

gwp

The relevance of analyzing whether exporting firms engage in greater pollution abatement cannot be overemphasized. For instance, the question relates to the possibility of export promotion policies being environmentally beneficial. In fact, the issue is especially relevant for developing countries typically characterized by ineffective environmental regulation. However, despite the significance of the topic, the extant literature examining the environmental consequences of firm-level trade is skewed toward developed countries. Moreover, the existing contributions rarely attend to concerns over non-random selection into exporting. Accordingly, we employ cross-sectional data across Indonesian firms as well as a number of novel identification strategies to assess the causal effect of exporting on abatement behavior. Two of the approaches are proposed by Millimet and Tchernis (2013), and entail either minimizing or correcting for endogeneity bias. The remaining methods, attributable to Lewbel (2012) and Klein and Vella (2009), rely on higher moments of the data to obtain exclusion restrictions. While we largely find exporting to encourage pollution abatement, the estimated impacts are more pronounced after accounting for selection into exporting.