The Survival of the Energy-Fittest: Evidence from French Manufacturing Firms

Ara Jo and Sébastien Houde

No 12695, CESifo Working Paper Series from CESifo

Abstract: This paper disentangles the roles of within-firm improvement and between-firm selection and market reallocation in determining aggregate energy intensity. Our analysis shows that selection and market reallocation play a stronger role than within-firm improvement in driving aggregate declines in energy intensity, despite the strong focus on within-firm response to climate policy measures in the existing empirical literature. We also find that these mechanisms, in particular the selection channel, can be leveraged by environmental policy.

Keywords: industry dynamics; energy intensity; decarbonization; environmental policy; manufacturing sector (search for similar items in EconPapers)
JEL-codes: L50 Q40 Q52 Q58 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_12695

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