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Energy Prices, Energy Intensity, and Firm Performance

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dc.contributor.authorAterido, Reyes
dc.contributor.authorIootty, Mariana
dc.contributor.authorMelecky, Martin
dc.date.accessioned2025-02-20T19:50:41Z
dc.date.available2025-02-20T19:50:41Z
dc.date.issued2025-02-20
dc.description.abstractThis paper estimates the effect of electricity prices on firm performance, focusing on firm productivity, sales, and employment. Using the World Bank Business Pulse Survey data for a sample of 24 emerging markets and developing economies during 2019–23, the paper estimates the average effect and the heterogeneous effects across industries of varying energy intensity and firms that implemented (or did not implement) energy efficiency measures (self-reported in the Business Pulse Survey). The findings show that increasing electricity prices by 1 percent reduces employment at firms in energy-intensive industries that did not adopt energy efficiency measures by about 1.5 percent, compared with similar firms in energy-non-intensive sectors. In parallel, energy-intensive firms may increase sales and productivity but this result is robust to all alternative specifications. Firms may increase sales while reducing employment after energy price hikes, by adopting energy-efficient technologies and by passing through costs to consumers in inelastic markets while reducing employment in energy-intensive sectors due to cost pressures. These results highlight the adoption of energy efficiency measures by firms as an important employment protection policy action to cope with future volatility in energy (electricity) prices.en
dc.identifierhttp://documents.worldbank.org/curated/en/099517402192512798/IDU1368ebe871a28014fc71bbb41c93b89139c4e
dc.identifier.doi10.1596/1813-9450-11069
dc.identifier.urihttps://hdl.handle.net/10986/42844
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11069
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectWORLD BANK BUSINESS PULSE SURVEY DATA
dc.subjectFIRM-LEVEL PANEL DATA
dc.subjectENERGY PRICES
dc.subjectENERGY INTENSITY OF INDUSTRIES AND FIRMS
dc.subjectFIRM PERFORMANCE
dc.subjectPRODUCTIVITY
dc.subjectSALES
dc.subjectEMPLOYMENT
dc.titleEnergy Prices, Energy Intensity, and Firm Performanceen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-02-20
okr.date.lastmodified2025-02-19T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099517402192512798/IDU1368ebe871a28014fc71bbb41c93b89139c4e
okr.guid099517402192512798
okr.identifier.docmidIDU-368ebe87-a280-4fc7-bbb4-c93b89139c4e
okr.identifier.doi10.1596/1813-9450-11069
okr.identifier.externaldocumentum34457929
okr.identifier.internaldocumentum34457929
okr.identifier.reportWPS11069
okr.import.id6659
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099517402192512798/pdf/IDU1368ebe871a28014fc71bbb41c93b89139c4e.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.geographicalWorld
okr.sectorFY17 - Public Administration - Financial Sector
okr.themeFinancial Sector oversight and policy/banking regulation & restructuring,Mitigation,Infrastructure Finance,Human Development and Gender,Financial Stability,ICT,Economic Policy,ICT Solutions,Fiscal Policy,Environment and Natural Resource Management,Disease Control,Finance for Development,Finance,Enterprise Development,Private Sector Development,Pandemic Response,MSME Development,Fiscal sustainability,Climate change,Adaptation,Disaster Risk Finance,Financial Sector Integrity
okr.topicEnergy::Energy Production and Transportation
okr.topicPrivate Sector Development::Corporate Data and Reporting
okr.topicEnergy::Energy Demand
okr.topicEnergy::Energy Finance
okr.unitEFI-ECA-FCI-Finance-1 (EECF1)
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relation.isAuthorOfPublicationc2369c70-649c-4c08-a1c8-b1dcb7d123de
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