This research project focused on understanding the various channels through which energy efficiency is achieved within firms. The study aims to investigate these channels using detailed firm-level data and employs a range of identification strategies. We plan to study the mechanisms through which energy efficiency is met, such as cleansing effects, productivity gains, innovation, trade, and other potential avenues. To achieve this, we will employ shift-share instruments, specifically Bartik instruments, to recover energy price shocks and estimate their impact on energy efficiency. Additionally, stochastic frontier analysis is used to identify firms' energy efficiency gaps and explore how energy price shocks influence them. Furthermore, the research plan to delve into the relationship between trade and firm-level energy efficiency. It aims to investigate how access to export and intermediary import markets can impact a firm's productivity and subsequently affect its energy efficiency levels. The study will also consider whether the destination of exports or imports plays a role in influencing energy efficiency. To address these questions, matching propensity scores are applied to control for export/import market entry selection, and theoretical models from existing literature are utilized. In summary, this research project aims to provide insights into the multifaceted pathways through which energy efficiency is achieved within firms, leveraging firm-level data and various analytical techniques to uncover the relationships between energy price shocks, trade, and energy efficiency.  

Leader: Marcelo Piemonte Ribeiro 

NPB Collaboration: France Stratégie (France), Sachverständigenrat für Wirtschaft (Germany)