Posted Content•
Credit constraints, energy management practices, and investments in energy saving technologies : German manufacturing in close-up
TL;DR: In this article, the authors analyzed the drivers and barriers that influence investments increasing the energy efficiency of firms' production processes or buildings in the German manufacturing sector based on microdata and shed light on the relationship between financial barriers, information and knowledge, and the investments in energy saving technologies.
Abstract: We analyze the drivers and barriers that influence investments increasing the energy efficiency of firms' production processes or buildings in the German manufacturing sector based on microdata. In particular, we shed light on the relationship between financial barriers (e. g. credit constraints), information and knowledge (e. g. energy management practices), salience of energy-related topics, and the investments in energy saving technologies. A better understanding of firms' investment behavior regarding energy saving technologies is crucial to design efficient policy measures, which are necessary to achieve the imposed ambitious climate and energy policy targets. We use data from 701 structured telephone interviews in combination with commercial and confidential firm-level data. Our results suggest that energy management practices have a statistically significant positive relationship with investment decisions on energy saving technologies for production processes and buildings. Credit constraints are a barrier to investments in the energy efficiency of firms' production processes. Furthermore, high energy cost shares of heating or cooling, high energy intensity, energy self-generation and structured internal decision making processes influence the investments in energy efficiency positively.
Citations
More filters
Posted Content•
TL;DR: In this article, the authors investigate the factors driving the adoption of energy-efficiency measures by small and medium-sized enterprises (SMEs) and find that high investment costs, which are captured by subjective and objective proxies, appear to impede the adoption energy-efficient measures, even if these measures are deemed profitable.
Abstract: This paper empirically investigates the factors driving the adoption of energy-efficiency measures by small and medium-sized enterprises (SMEs). Our analyses are based on cross-sectional data from SMEs which participated in a German energy audit program between 2008 and 2010. In general, our findings appear robust to alternative model specifications and are consistent with the theoretical and still scarce empirical literature on barriers to energy efficiency in SMEs. More specifically, high investment costs, which are captured by subjective and objective proxies, appear to impede the adoption of energy-efficient measures, even if these measures are deemed profitable. Similarly, we find that lack of capital slows the adoption of energy-efficient measures, primarily for larger investments. Hence, investment subsidies or soft loans (for larger invest-ments) may help accelerating the diffusion of energy-efficiency measures in SMEs. Other barriers were not found to be statistically significant. Finally, our findings provide evidence that the quality of energy audits affects the adoption of energy-efficiency measures. Hence, effective regulation should involve quality standards for energy au-dits, templates for audit reports or mandatory monitoring of energy audits.
181 citations
TL;DR: In this paper, the authors examined the role of different environmental policy measures on energy efficiency investment in Spanish industries for the period 2010-2017 and constructed a database from several sources for Spanish industries.
29 citations
TL;DR: In this paper, the authors evaluate the effectiveness of the Eco-Management and Audit Scheme (EMAS) and find weak evidence of reductions in CO2 intensity by about 9 percent for firms that were certified in the early years of the program.
22 citations
TL;DR: In this article , the impact of electricity costs on plant performance in German manufacturing has been studied using micro-data on electricity network charges and the official plant census data for Germany.
Abstract: Climate policy often implies increasing energy prices. Due to incomplete regulation across the globe, concerns about competitiveness and employment effects play an important role in the policy debate. Using micro-data on electricity network charges and the official plant census data for Germany, we study the impact of rising electricity costs on plant performance in German Manufacturing. Electricity network charges are determined through regulation in Germany and therefore exogenous to each individual manufacturing plant, while making up a substantial share of final electricity prices. We find evidence of negative own-price elasticities for electricity both in the long- and in the short-run. A one cent increase in average network charges leads to a decrease in electricity procurement of roughly 3 %. We do not find any significant effects on revenues, investments or capital stocks.
1 citations
References
More filters
09 May 2005
TL;DR: This chapter discusses models for making pseudo-random draw, which combines asymptotic theory, Bayesian methods, and ML and NLS estimation with real-time data structures.
Abstract: This book provides the most comprehensive treatment to date of microeconometrics, the analysis of individual-level data on the economic behavior of individuals or firms using regression methods for cross section and panel data. The book is oriented to the practitioner. A basic understanding of the linear regression model with matrix algebra is assumed. The text can be used for a microeconometrics course, typically a second-year economics PhD course; for data-oriented applied microeconometrics field courses; and as a reference work for graduate students and applied researchers who wish to fill in gaps in their toolkit. Distinguishing features of the book include emphasis on nonlinear models and robust inference, simulation-based estimation, and problems of complex survey data. The book makes frequent use of numerical examples based on generated data to illustrate the key models and methods. More substantially, it systematically integrates into the text empirical illustrations based on seven large and exceptionally rich data sets.
8,189 citations
"Credit constraints, energy manageme..." refers background or methods in this paper
...Our models fail both tests, which are suggested by Cameron and Trivedi (2005)....
[...]
...Therefore, we use the selection model to allow for possible dependencies in the two parts of the model (cf. Cameron and Trivedi, 2005)....
[...]
...(4) In our speci cation this translates into the following linear relationship for the latent variable equation: y∗i = α+ θGi + µMi + φFi + χXi + ui, (5) 7The results of both models are very similar, theoretically as well as for our speci cations (cf. Cameron and Trivedi, 2005)....
[...]
...to analyze possible correlations of the latent variables (Cameron and Trivedi, 2005)....
[...]
...8As a simple alternative Cameron and Trivedi (2005) suggest to employ an OLS regression of y on x....
[...]
TL;DR: In this paper, the authors studied the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms and showed that the increase in revenues produced by trade integration can induce exporters to upgrade technology.
Abstract: This paper studies the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms. To guide empirical work, I introduce technology choice in Melitz’s (2003) model of trade with heterogeneous firms. The joint treatment of the technology adoption and exporting choices shows that the increase in revenues produced by trade integration can induce exporters to upgrade technology. An empirical test of the model reveals that firms in industries facing higher reductions in Brazil’s import tariffs increase their investment in technology faster and exporters upgrade technology faster than other firms in the same industry.
1,365 citations
"Credit constraints, energy manageme..." refers background in this paper
...Energy costs and intensity An investment in energy saving technologies may include an additional xed cost, but could lead to reductions of a rm's variable energy costs and also of its energy intensity (Bustos, 2011)....
[...]
...Energy costs and intensity An investment in energy saving technologies may include an additional xed cost, but could lead to reductions of a rm's variable energy costs and also of its energy intensity (Bustos, 2011). We analyze the relationship of the investments to the rm's energy intensity and de ne energy intensity, similar to Martin et al. (2012), as the energy cost share of turnover, also to prevent the rm size (i....
[...]
TL;DR: In this paper, the authors discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion, and argue that specific policies for promoting energy conservation may be required, preferably based on economic instruments or on the provision of information to consumers.
Abstract: Energy efficiency and conservation are major factors in the reduction of the environmental impact of the energy sector, particularly with regard to climate change. Energy efficiency also contributes to reducing external dependence and vulnerabilities in the energy domain. In this paper, we discuss the factors that influence energy efficiency and conservation decisions, and the most appropriate policies for their promotion. Although not all public policies seem justified, we argue that specific policies for promoting energy conservation may be required, preferably based on economic instruments or on the provision of information to consumers.
738 citations
TL;DR: The authors summarize what we learn from this literature to guide future empirical and theoretical work in this area, focusing on the empirical part of the literature that consists of recently published papers using data for firms from manufacturing or services industries to study the links between international trade (exports and imports) and dimensions of firm performance.
Abstract: The literature on international trade and firm performance grows exponentially. This paper attempts to summarize what we learn from this literature to guide future empirical and theoretical work in this area. The focus is on the empirical part of the literature that consists of recently published papers using data for firms from manufacturing or services industries to study the links between international trade (exports and imports) and dimensions of firm performance (productivity, wages, profitability and survival).
532 citations
"Credit constraints, energy manageme..." refers background in this paper
...Furthermore, there is empirical literature suggesting that exporting rms have a higher productivity than non-exporting rms (e. g. Wagner, 2012)....
[...]
TL;DR: In this paper, the authors review explanations for an energy efficiency gap, including reasons why the size of the gap may be overstated, neoclassical explanations for a gap, and recent evidence from behavioral economics that has potential to help us understand why a gap could exist.
Abstract: Despite several decades of government policies to promote energy efficiency, estimates of the costs and benefits of such policies remain controversial. At the heart of the controversy is whether there is an "energy efficiency gap," whereby consumers and firms fail to make seemingly positive net present value energy saving investments. High implicit discount rates, undervaluation of future fuel savings, and negative cost energy efficiency measures have all been discussed as evidence of the existence of a gap. We review explanations for an energy efficiency gap, including reasons why the size of the gap may be overstated, neoclassical explanations for a gap, and recent evidence from behavioral economics that has potential to help us understand why a gap could exist. Our review raises fundamental questions about traditional welfare analysis, yet we find the alternatives offered in the literature to be far from ready for use in policy analysis. Nevertheless, we offer several suggestions for policymakers and for future economic research.
529 citations
"Credit constraints, energy manageme..." refers background in this paper
...It can arise due to different incentives for owners and renters, in this case, of buildings (Gerarden et al., 2017; Gillingham and Palmer, 2014)....
[...]
...It can arise due to di erent incentives for owners and renters, in this case, of buildings (Gerarden et al., 2017; Gillingham and Palmer, 2014)....
[...]
...However, due to the lack of empirical evidence this discussion has remained mostly theoretical (cf. Gillingham et al., 2009; Gillingham and Palmer, 2014)....
[...]
...…in uence of credit constraints on the NPV of investments in energy saving technologies as well as the theoretical and empirical, self-reported, evidence from the economic literature (cf. Rohdin et al., 2007, Schleich and Gruber, 2008; Allcott and Greenstone, 2012; or Gillingham and Palmer, 2014)....
[...]