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Is there an environmental benefit to being an exporter? Evidence from firm-level data

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  • Svetlana Batrakova

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  • Ronald Davies

Abstract

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. Copyright Kiel Institute 2012

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 148 (2012)
Issue (Month): 3 (September)
Pages: 449-474

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Handle: RePEc:spr:weltar:v:148:y:2012:i:3:p:449-474

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Keywords: Exporting; Energy; Heterogeneity; Matching; Quantiles; F18; L23; Q56; C21;

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Citations

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Cited by:
  1. Cui, Jingbo & Qian, Hang, 2013. "The Effects of Exports on Facility Environmental Performance: Evidence from a Matching Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149550, Agricultural and Applied Economics Association.
  2. Cui, Jingbo & Lapan, Harvey & Moschini, GianCarlo, 2012. "Are Exporters More Environmentally Friendly than Non-Exporters? Theory and Evidence," Staff General Research Papers 35549, Iowa State University, Department of Economics.
  3. Forslid, Rikard & Okubo, Toshihiro & Ulltveit-Moe, Karen-Helene, 2011. "International trade, CO2 emissions and heterogeneous firms," CEPR Discussion Papers 8583, C.E.P.R. Discussion Papers.
  4. John P. Weche Geluebcke & Isabella Wedl, 2013. "Environmental Protection of Foreign Firms in Germany: Does the country of origin matter?," Working Paper Series in Economics 267, University of Lüneburg, Institute of Economics.

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