Is there an environmental benefit to being an exporter? Evidence from firm-level data

Svetlana Batrakova; Ronald B. Davies

doi:10.1007/s10290-012-0125-2

Review of World Economics

September 2012, Volume 148, Issue 3, pp 449–474

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Authors
Authors and affiliations

Svetlana BatrakovaEmail author
Ronald B. Davies

Original Paper

First Online:: 13 March 2012

DOI: 10.1007/s10290-012-0125-2

Cite this article as:: Batrakova, S. & Davies, R.B. Rev World Econ (2012) 148: 449. doi:10.1007/s10290-012-0125-2

5 Citations
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Abstract

One concern over globalisation is its impact on the environment. We analyse the consequences of becoming an exporter on a firm’s energy consumption. We show theoretically and empirically with firm-level data that the increase in energy use when exporting is negatively correlated with energy intensity. This is because, although energy use rises with exporting due to greater production and transportation, it can be offset by adopting more energy-efficient technology. This second effect is strongest for high energy intensity firms. As such, analysis of average effects, as in other studies, conceals important connections between the trade and the environment.

Keywords

ExportingEnergyHeterogeneityMatchingQuantiles

This paper uses confidential micro data set of the Central Statistics Office Ireland (CSO). The restricted and controlled access to the data was provided in accordance with the Statistics Act, 1993. We are very grateful to Kevin Phelan, Dan Lawlor and Jane O’Brien for the provided assistance. We thank Stefanie Haller, Paul Devereux, Fergal McCann, participants at the 2010 Spring Midwest International Trade Meeting, at the ESRI Research Seminar, Xth RIEF Meeting, at the 24th Irish Economic Association Conference and the editor and one anonymous referee for helpful comments and suggestions. Funding from the Irish Research Council for the Humanities and Social Sciences (IRCHSS) and the Irish Research Council for Science, Engineering and Technology (IRCSET) is gratefully acknowledged. This paper is produced as part of the project “Globalization, Investment and Services Trade (GIST) Marie Curie Initial Training Network (ITN)” funded by the European Commission under its Seventh Framework Programme—Contract No. FP7-PEOPLE-ITN-2008-211429.

JEL Classification

F18L23Q56C21

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Authors and Affiliations

Svetlana Batrakova
- 1
Email author
Ronald B. Davies
- 1

1.School of EconomicsUniversity College DublinDublinIreland

Is there an environmental benefit to being an exporter? Evidence from firm-level data

Abstract

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