Energy use and exporting: an analysis of Chinese firms

As global emissions increase with global trade, there is a critical need to understand the importance of energy use in export-oriented manufacturing activities in emerging economies. We investigate this issue by examining whether the extent of firms’ involvement in exporting is associated with the energy-intensiveness of their production activities. We use data from a survey of Chinese firms, officially classified as users of ‘advanced’ technologies. Although in recent years China has been attempting to discourage exports of energy- and pollution-intensive products, our results show a positive association between firms’ energy-use intensity and their exporting. This relationship exists across industries with different levels of technological sophistication, but is particularly salient in industries characterized by high energy-use intensity. We discuss the theoretical and policy implications of these findings.