Import competition and energy efficiency: Firms' responses to the WTO accession in China

Xueyue Liu, Yu Liu and Ruili Zhao

Journal of Economic Behavior & Organization, 2023, vol. 214, issue C, 670-690

Abstract: This paper investigates the impact of import competition on energy efficiency among firms in China. Using a difference-in-differences approach that exploits industry- and firm-level tariff reductions following China's accession to the WTO, we examine the effects of reduced output tariffs on coal intensity, measured as coal use per output, of Chinese manufacturing firms. Our findings indicate that higher levels of import competition lead to significant reductions in coal intensity, without negatively affecting firm production levels. We also find evidence that these effects are primarily driven by multi-product firms adjusting their product mix to prioritize energy-saving options.

Keywords: Import competition; Energy efficiency; Product mix (search for similar items in EconPapers)
JEL-codes: F18 F64 Q41 Q56 (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:jeborg:v:214:y:2023:i:c:p:670-690

DOI: 10.1016/j.jebo.2023.08.010

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