Journal
REVIEW OF WORLD ECONOMICS
Volume 148, Issue 3, Pages 449-474Publisher
SPRINGER
DOI: 10.1007/s10290-012-0125-2
Keywords
Exporting; Energy; Heterogeneity; Matching; Quantiles
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Funding
- Economic and Social Research Council [ES/G021694/1] Funding Source: researchfish
- ESRC [ES/G021694/1] Funding Source: UKRI
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One concern over globalisation is its impact on the environment. We analyse the consequences of becoming an exporter on a firm's energy consumption. We show theoretically and empirically with firm-level data that the increase in energy use when exporting is negatively correlated with energy intensity. This is because, although energy use rises with exporting due to greater production and transportation, it can be offset by adopting more energy-efficient technology. This second effect is strongest for high energy intensity firms. As such, analysis of average effects, as in other studies, conceals important connections between the trade and the environment.
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