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Energy Efficiency and Productivity: A Worldwide Firm-level Analysis

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  • Pierluigi Montalbano
  • Silvia Nenci
  • Davide Vurchio

Abstract

This work aims to explore the relationship between energy efficiency and productivity using firm-level data. Although important to policymaking, very few academic studies analyze this relationship at the firm level. Taking advantage of the national representative World Bank Enterprise Survey (WBES) data, we contribute to the current literature by providing one of the most comprehensive firmlevel analyses to date in terms of geographical coverage. To this end, we apply a standard constant return to scale Cobb-Douglas production function expanded to energy efficiency. Our findings show a positive relationship between alternative measures of energy efficiency and firm-level productivity. This relationship holds, albeit with different magnitudes, for all industries and regional groups. This work provides further empirical support for the messages conveyed by international institutions regarding the positive relationship between environmental actions and firm performance, thus supporting collective efforts to improve the private sector’s energy efficiency, including the implementation of Agenda 2030.

Suggested Citation

  • Pierluigi Montalbano & Silvia Nenci & Davide Vurchio, 2022. "Energy Efficiency and Productivity: A Worldwide Firm-level Analysis," The Energy Journal, , vol. 43(5), pages 93-116, September.
    • Handle: RePEc:sae:enejou:v:43:y:2022:i:5:p:93-116
    DOI: 10.5547/01956574.43.5.pmon
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    References listed on IDEAS

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    1. Tomasz Kozluk & Vera Zipperer, 2014. "Environmental policies and productivity growth: a critical review of empirical findings," OECD Journal: Economic Studies, OECD Publishing, vol. 2014(1), pages 155-185.
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    3. Proskuryakova, L. & Kovalev, A., 2015. "Measuring energy efficiency: Is energy intensity a good evidence base?," Applied Energy, Elsevier, vol. 138(C), pages 450-459.
    4. Luigi Grossi & Mauro Mussini, 2017. "Inequality in Energy Intensity in the EU-28: Evidence from a New Decomposition Method," The Energy Journal, , vol. 38(4), pages 1-18, July.
    5. Okereke, Chukwumerije, 2007. "An Exploration of Motivations, Drivers and Barriers to Carbon Management:: The UK FTSE 100," European Management Journal, Elsevier, vol. 25(6), pages 475-486, December.
    6. Luis R. Murillo-Zamorano, 2005. "The Role of Energy in Productivity Growth: A Controversial Issue?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 69-88.
    7. Sam H. Schurr, 1982. "Energy Efficiency and Productive Efficiency: Some Thoughts Based on American Experience," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 3-14.
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    Cited by:

    1. Lee, Chien-Chiang & Wen, Huwei, 2025. "Global value chain embedding and enterprise energy efficiency: A worldwide firm-level analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    2. Shu, Tianheng & Liao, Xia & Yang, Shuo & Yu, Taofang, 2024. "Towards sustainability: Evaluating energy efficiency with a super-efficiency SBM-DEA model across 168 economies," Applied Energy, Elsevier, vol. 376(PA).
    3. Du, Zhili & Hao, Peng, 2025. "Firm clustering, agglomeration externalities and energy efficiency: Evidence from chinese industrial enterprises," Energy Economics, Elsevier, vol. 145(C).

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