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Energy Efficiency and Productivity: A Worldwide Firm-level Analysis

Author

Listed:
  • 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. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
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    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.
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    8. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 17(4), pages 578-599, August.
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    Citations

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    Cited by:

    1. Romero-Jordán, Desiderio & del Río, Pablo & Pinto, Fernando, 2025. "Does energy productivity boost total factor productivity?," Energy Policy, Elsevier, vol. 206(C).
    2. Srivastav, Shashank Prakash & Kannadhasan, M., 2025. "Environment and Energy: Does climate risk shape the energy consumption behavior of firms?," Energy Economics, Elsevier, vol. 148(C).
    3. Yu, Yantuan & Zhang, Ning, 2026. "Revealing the power of market-based energy policy: Evidence from China's energy quota trading system using machine learning," Energy Policy, Elsevier, vol. 208(C).
    4. Yantuan Yu & Ning Zhang, 2025. "Revealing the Power of Market-Based Energy Policy: Evidence from China’s Energy Quota Trading System Using Machine Learning," Working papers 2025rwp-258, Yonsei University, Yonsei Economics Research Institute.
    5. 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).
    6. 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).
    7. 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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