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

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Author Info

  • Svetlana Batrakova

    (University College Dublin)

  • Ronald B Davies

    (University College Dublin)

Abstract

One of the greatest concerns over globalisation is its impact on the environment. This paper contributes to this debate by analysing the consequences of becoming an exporter on a firm's energy consumption. We show both theoretically and empirically that for low fuel intensity firms exporting status is associated with higher fuel consumption while for high fuel intensity firms exporting is results in decreased fuel consumption. Further analysis reveals that higher fuel consumption of low fuel intensity firms occurs after exporting, perhaps as a response to increased production. In contrast, firms using relatively large quantities of fuel decrease their energy use after exporting, perhaps by adopting more fuel-efficient technology. These results indicate that the use of aggregate data, as is the case in almost all studies of trade and the environment, is likely to conceal important connections between the two.

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Bibliographic Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 201007.

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Length: 30 pages
Date of creation: 31 Mar 2010
Date of revision:
Handle: RePEc:ucn:wpaper:201007

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Keywords: Exporting; Energy; Heterogeneity; Quantiles; Matching;

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References

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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. 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.

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