Energy is an essential production input for firms. Governments around the world have been subsidizing the production and consumption of energy for decades. By reforming energy subsidies, governments can reduce some of the distortions affecting how firms mix production inputs to generate output. Although there is extensive academic literature and policy debate about the impacts of energy subsidies and their reform focusing on households, much more limited research and evidence had been available on firm-level effects. From 2010 onward, there has been a growing amount of research examining the various ways in which firms are affected by energy price changes. These recent papers explore how and the extent to which energy price changes affect firms of different sizes, capacities, and setups across various sectors. This paper reviews recent research on the firm-level impacts of energy price increases, documents emerging themes and insights, and offers recommendations for dimensions that can be considered in future work.
Authors
- Citation
- “ Amann, Juergen ; Gencer, Defne ; Heine, Dirk . 2024 . Firm-Level Effects of Energy Price Increases: Evidence and Insights from Recent Research . Energy Subsidy Reform in Action Series. ESMAP Technical Report . © Washington, DC: World Bank . http://hdl.handle.net/10986/41914 License: CC BY 3.0 IGO . ”
- Collection(s)
- ESMAP papers
- DOI
- https://doi.org/10.1596/41914
- Identifier externaldocumentum
- 34366548
- Identifier internaldocumentum
- 34366548
- Pages
- 60
- Published in
- United States of America
- RelationisPartofseries
- Energy Subsidy Reform in Action Series. ESMAP Technical Report
- Report
- 192634
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- http://creativecommons.org/licenses/by/3.0/igo
- UNIT
- ESMAP2 (IEES2)
- URI
- https://hdl.handle.net/10986/41914
- date disclosure
- 2024-07-19
- region geographical
- World
- theme
- Social Safety Nets,Mitigation,Energy,Gender,Human Development and Gender,Social Protection,Social Development and Protection,Energy Policies & Reform,Environment and Natural Resource Management,Climate change,Adaptation,Energy Efficiency
Files
Table of Contents
- _Hlk160723487 20
- _Hlk160723594 27
- _Hlk160723606 27
- _Hlk160565766 30
- _Hlk160566063 30
- _Hlk160745347 30
- _Hlk160563104 30
- _Hlk160567588 32
- _Hlk161073135 33
- _Hlk161073039 33
- _Hlk165971975 43
- Acknowledgments 7
- Executive Summary 8
- 1.1. Background and First Principles 14
- 1.2. What Do Microdata Say about Firm-Level Impacts of Energy Price Changes? 16
- 1.3. Firm-Level Response Mechanisms to Policy-Induced Energy Price Changes 17
- A Summary of the Literature 24
- 2.1. Pass-Through 27
- 2.2. Absorption 29
- 2.3. Substitution 34
- 2.4. Innovation and Productivity 36
- The Importance of Careful Policy Design 44
- Areas for Future Work 46
- Introduction 12
- References 49
