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The Impact of Special Economic Zones on Electricity Intensity of Firms

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  • Ronald B. Davies, T. Huw Edwards, and Arman Mazhikeyev

Abstract

In light of concerns over the environmental impact of Special Economic Zones located in developing countries, where environmental regulation is weak, we analyse the electricity intensity of firms in SEZs. We use firm level data from Africa and Asia, and we find that SEZ firms have higher electricity intensity as opposed to non-SEZ firms. If they also face higher fiscal, financial or environmental regulations, the electricity intensity of firms in SEZs increases by a greater rate as opposed to non-SEZ firms. As such, establishing SEZs may have significant environmental implications.

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  • Ronald B. Davies, T. Huw Edwards, and Arman Mazhikeyev, 2018. "The Impact of Special Economic Zones on Electricity Intensity of Firms," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    • Handle: RePEc:aen:journl:ej39-si1-edwards
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    2. Jianmin You & Xiqiang Chen & Jindao Chen, 2021. "Decomposition of Industrial Electricity Efficiency and Electricity-Saving Potential of Special Economic Zones in China Considering the Heterogeneity of Administrative Hierarchy and Regional Location," Energies, MDPI, vol. 14(17), pages 1-22, September.
    3. Yang Liu & Yidan Jin, 2022. "Special economic zones, export status, and firms’ productivity: Theory and evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1338-1360, August.

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