CO2 emission intensity and exporting: Evidence from firm-level data
Philipp Richter () and
Alexander Schiersch ()
European Economic Review, 2017, vol. 98, issue C, 373-391
This paper analyses whether exporting firms are less CO2 emission-intensive than non-exporting competitors. It exploits a novel and unique dataset for Germany, a major exporting country. Due to the direct link between CO2 emissions and fuels consumed, we argue that it is necessary to employ a production function framework to consistently analyse CO2 emission intensity. We show that such an approach solves the issue of omitted variable bias that standard regressions approaches on CO2 emission intensity of firms are exposed to. Furthermore, it enables us to apply latest econometric techniques from the productivity literature to resolve the endogeneity problem of unobserved productivity and to include a measure of export activity into the estimation. Our findings suggest a positive relation between export intensity and CO2 productivity—the inverse of emission intensity. This exporter’s environmental premium holds for most of the German manufacturing industries at the two-digit level.
Keywords: CO2 emission intensity; Export activity; Productivity; Firms; Manufacturing; Germany (search for similar items in EconPapers)
JEL-codes: F18 Q54 D22 D24 L60 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:98:y:2017:i:c:p:373-391
Access Statistics for this article
European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer
More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().