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Journal Articles Journal of Development Economics Year : 2018

Energy efficiency gains from importing intermediate inputs: Firm-level evidence from Indonesia

Abstract

This paper investigates whether importing intermediate goods improves firm-level environmental performance in a developing country, using data from the Indonesian manufacturing sector. We build a simple theoretical model showing that trade integration of input markets entails energy efficiency improvements within importers relative to non-importers. To empirically isolate the impact of firm participation in foreign intermediate input markets we use ‘nearest neighbour’ propensity score matching and difference-in-difference techniques. Covering the period 1991–2005, we find evidence that becoming an importer of foreign intermediates boosts energy efficiency, implying beneficial effects for the environment.
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Dates and versions

hal-01847018 , version 1 (23-07-2018)

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Michele Imbruno, Tobias Ketterer. Energy efficiency gains from importing intermediate inputs: Firm-level evidence from Indonesia. Journal of Development Economics, 2018, 135, pp.117 - 141. ⟨10.1016/j.jdeveco.2018.06.014⟩. ⟨hal-01847018⟩
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