Selling under other skies when energy prices skyrocket: how do the companies adapt their export strategy when energy prices rise?

Damien Dussaux () and Stéphanie Monjon
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Damien Dussaux: OCDE / OECD - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development

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Abstract: The prospect of higher carbon taxation raises concerns that these policies could hinder the ability of domestic industry to compete in export markets, especially for energy-intensive sectors. The recent jump in energy prices leads to even greater worries. This paper investigates the impact of a change in energy prices on export patterns of manufacturing firms using a large panel of French firms observed from 2001 to 2015. The identification strategy uses a fixed weight energy price index as a shift-share instrumental variable for the average energy cost. For the average firm we find that a 10% increase in the energy cost is associated with a 3.6% decrease in total export value, a 1.3% decrease in the number of export destinations, and a 2.3% increase in export prices. But there are substantial heterogeneities between firms facing a similar increase in energy costs and the impact of an energy cost increase differs from one destination export to another.

Keywords: Low energy price countries; OECD and non-OECD countries; Extensive and intensive margins; Export performance; Price gap; Energy cost (search for similar items in EconPapers)
Date: 2023
Note: View the original document on HAL open archive server: https://hal.science/hal-04414793v1
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Citations: View citations in EconPapers (2)

Published in Energy Policy, 2023, 183, ⟨10.1016/j.enpol.2023.113777⟩

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Journal Article: Selling under other skies when energy prices skyrocket: How do the companies adapt their export strategy when energy prices rise? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04414793

DOI: 10.1016/j.enpol.2023.113777

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