Energy efficiency, market competition, and quality certification: Lessons from Central Asia

Vladimir Otrachshenko, Christopher Hartwell and Olga Popova

Energy Policy, 2023, vol. 177, issue C

Abstract: Energy efficiency at the firm level is determined by a series of complex and multifaceted factors related to firm-specific attributes and a firm's external environment. A weak institutional environment may exacerbate barriers to energy efficiency, sending interested firms in search of ways in which to signal their commitment to improving their energy usage. Paramount among these mechanisms is internationally recognized quality certification, which can both reward a firm for prior improvements and alert consumers about the quality of a firm's products. This paper examines the effect of quality certification on energy efficiency in a particularly low institutional quality environment, the four transition countries of Central Asia. Using firm-level data and controlling for other determinants of energy intensity, we find that firms that have quality certifications are indeed more efficient in their use of energy. Perhaps more importantly, we find that competition from the informal sector is also incredibly important to improved energy efficiency. The effect of certification also runs back to firm planning, as certified firms are more likely to focus on energy efficiency metrics rather than overall usage in planning for the future.

Keywords: Energy efficiency; Quality certification; Market competition; Informal economy; Central asia (search for similar items in EconPapers)
JEL-codes: O13 P28 P31 Q40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:177:y:2023:i:c:s0301421523001246

DOI: 10.1016/j.enpol.2023.113539

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