| ID | 192782 |
| Title Proper | Selling under other skies when energy prices skyrocket |
| Other Title Information | How do the companies adapt their export strategy when energy prices rise? |
| Language | ENG |
| Author | Dussaux, Damien |
| Summary / Abstract (Note) | The prospect of higher carbon taxation raises concerns that these policies could hinder the ability of domestic industry to compete in export markets, especially for energy-intensive sectors. The recent jump in energy prices leads to even greater worries. This paper investigates the impact of a change in energy prices on export patterns of manufacturing firms using a large panel of French firms observed from 2001 to 2015. The identification strategy uses a fixed weight energy price index as a shift-share instrumental variable for the average energy cost. For the average firm we find that a 10% increase in the energy cost is associated with a 3.6% decrease in total export value, a 1.3% decrease in the number of export destinations, and a 2.3% increase in export prices. But there are substantial heterogeneities between firms facing a similar increase in energy costs and the impact of an energy cost increase differs from one destination export to another. |
| `In' analytical Note | Energy Policy Vol. 183, Dec 2023: p.113777 |
| Journal Source | Energy Policy 2023-12 183 |
| Key Words | Skyrocket ; Strategy when energy |