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Energy Prices and Competitiveness in the Manufacturing Sector

Author

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  • Amann, Juergen
  • Cantore, Nicola

Abstract

We investigate the relationship between energy prices and manufacturing competitiveness at the industry level. Drawing on panel data spanning the mid-1990s to the 2010s from an extensive multi-sector dataset, we shed light on the nonlinear dynamics between energy prices and the sector-level performance of manufacturing industries. Our findings link to ongoing work on the effect of energy prices on firm-level performance by highlighting considerable sector-specific heterogeneity, indicating the complex and intricate relationship between economic performance and the cost of energy.

Suggested Citation

  • Amann, Juergen & Cantore, Nicola, 2025. "Energy Prices and Competitiveness in the Manufacturing Sector," MPRA Paper 127199, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127199
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    File URL: https://mpra.ub.uni-muenchen.de/127942/1/MPRA_paper_127942.pdf
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    References listed on IDEAS

    as
    1. Hille, Erik & Möbius, Patrick, 2019. "Do energy prices affect employment? Decomposed international evidence," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 1-21.
    2. Mark A. Cohen & Adeline Tubb, 2018. "The Impact of Environmental Regulation on Firm and Country Competitiveness: A Meta-analysis of the Porter Hypothesis," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 371-399.
    3. Sato, Misato & Singer, Gregor & Dussaux, Damien & Lovo, Stefania, 2019. "International and sectoral variation in industrial energy prices 1995–2015," Energy Economics, Elsevier, vol. 78(C), pages 235-258.
    4. Mr. Robert Gillingham & David Locke Newhouse & Mr. David Coady & Mr. Kangni R Kpodar & Moataz El-Said & Mr. Paulo A Medas, 2006. "The Magnitude and Distribution of Fuel Subsidies: Evidence from Bolivia, Ghana, Jordan, Mali, and Sri Lanka," IMF Working Papers 2006/247, International Monetary Fund.
    5. Calì, Massimiliano & Cantore, Nicola & Iacovone, Leonardo & Pereira-López, Mariana & Presidente, Giorgio, 2022. "Too much energy The perverse effect of low fuel prices on firms," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    6. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    7. Ma, Yue & Tang, Heiwai & Zhang, Yifan, 2014. "Factor Intensity, product switching, and productivity: Evidence from Chinese exporters," Journal of International Economics, Elsevier, vol. 92(2), pages 349-362.
    8. Marin, Giovanni & Vona, Francesco, 2021. "The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015," European Economic Review, Elsevier, vol. 135(C).
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    Keywords

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    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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