The Energy-Management Nexus in Firms : Which Practices Matter, How Much and for Whom?
Management practices matter for firm performance. As energy is one input in firm production, management practices may interact with energy use. Using a comprehensive firm-level database covering 31 countries, this study documents the link between s...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/983681600110061019/The-Energy-Management-Nexus-in-Firms-Which-Practices-Matter-How-Much-and-for-Whom http://hdl.handle.net/10986/34483 |
| Summary: | Management practices matter for firm
performance. As energy is one input in firm production,
management practices may interact with energy use. Using a
comprehensive firm-level database covering 31 countries,
this study documents the link between structured management
practices, energy use, and firm performance. The paper
reports several findings. First, although management is
negatively correlated with energy expenditure, it bears a
positive (or 0) relationship with physical energy use,
suggesting that management effort is directed toward saving
costs but not reducing environmental impact. These results
are primarily driven by the manufacturing sector. Second,
among the structured management practices examined, those
relating to target-setting are associated with reduced
energy expenditure intensity. Third, generic management
practices are correlated with greater discipline around
energy management. Finally, while generic practices are
correlated with stronger firm performance in manufacturing
and services, energy-centric practices show a positive
association only in services. Vast heterogeneity in adoption
and outcomes suggests that targeted approaches to encourage
energy management practices in firms may be more effective
than uniform ones. |
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