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Energy efficiency and productivity in emerging and developing Asian countries: A firm level analysis

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  • Shehzadi, Anam

Abstract

The Asian region has experienced tremendous growth in recent years. As in therest of the world, this progress has led to significant energy consumption, which in turn is having a major environmental impact. As a result, energy efficiency strategies have become the order of the day for many industries. However, the relationship betweenproductivity and energy efficiency has hardly been studied at thefirm's level. This paper uses three measuresfor a comprehensive analysis of firm-level productivity and energy efficiency in Asian emerging and developing countries. Data from the World Bank Enterprise Surveys (WBES) from 2011 to 2016 are used for the empirical analysis. The results show that manufacturing businesses' Productivity ispositively associated with energy efficiency acrossthe region. These results are robust acrossall three energy efficiency measures, accounting for heterogeneity by countryand industry, and are consistent with Porter's hypothesis that improving environmental quality leads tohigher firm Productivity. Thus, the results support the proposition that improving energy efficiency contributes to increasing manufacturing firms' Productivity. Therefore, focusing on energy efficiency should bean integral part of policy-making for companies looking to increase output as well as to improve environmental quality.

Suggested Citation

  • Shehzadi, Anam, 2023. "Energy efficiency and productivity in emerging and developing Asian countries: A firm level analysis," Journal of Asian Economics, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:asieco:v:88:y:2023:i:c:s1049007823000738
    DOI: 10.1016/j.asieco.2023.101653
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    Cited by:

    1. Wang, Hongxia & Deng, Wenyueyang & Zhang, Zenglian & Li, Ming, 2024. "Does government's environmental attention improve urban energy efficiency?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    2. Yulin Lu & Chengyu Li & Min-Jae Lee, 2023. "A Study on the Measurement and Influences of Energy Green Efficiency: Based on Panel Data from 30 Provinces in China," Sustainability, MDPI, vol. 15(21), pages 1-17, October.

    More about this item

    Keywords

    Firm productivity; Firm-level energy efficiency; Emerging and developing Asian countries;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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