EconPapers    
Economics at your fingertips  
 

Examining the nexus between exporting status and CO2 productivity in Indonesian agri-based manufacturing

Putriesti Mandasari and Jeff Luckstead

Energy Economics, 2025, vol. 143, issue C

Abstract: Despite growing concerns over the environmental implications of international trade in emerging economies, the relationship between exporting and carbon footprint remains underexplored. Utilizing plant-level data from Indonesia from 2009 to 2015, this study contributes to the firm-level literature examining the environmental consequences of exporting. Relying on a two-step Generalized Method of Moments (GMM) approach, this study adapts a structural approach based on Richter and Schiersch (2017, CO2 Emission Intensity and Exporting: Evidence from Firm-Level Data, European Economic Review). This study finds that exporting is associated with increased CO2 productivity, i.e., sales per unit of CO2 emissions, in agri-based manufacturing. However, it uncovers heterogeneous associations across industries, sizes, locations, and ownership types. The productivity gap between exporters and non-exporters largely explains the export orientation and CO2 productivity nexus. The findings suggest three relevant policy implications: facilitating plants' entry into international markets by improving infrastructure and reducing export barriers; reconsidering incentives that favor smaller plants to prevent growth disincentives; and carefully evaluating advantages offered to foreign-owned plants, such as free trade zones, solely from a CO2 productivity perspective.

Keywords: Export; Carbon emissions; CO2 productivity; Indonesia; Agri-based; Food industry; Manufacture (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988325000386
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325000386

DOI: 10.1016/j.eneco.2025.108215

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-24
Handle: RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325000386