16.11.2022 – Seminar Lecture Series: Energy Efficiency, Market Competition, and Quality Certification: Lessons from Central Asia

Presenter: Dr. Vladimir Otrachshenko, Center for International Development and Environmental Research

Abstract

The determinants of energy efficiency in firms are driven by a series of complex and multifaceted factors related to firm-specific attributes and a firm’s external environment. A weak institutional environment may exacerbate barriers to energy efficiency, sending interested firms in search of ways in which to signal their commitment to improving their energy usage. Paramount among these mechanisms is internationally recognized quality certification, which can both reward a firm for prior improvements and alert consumers about the quality of a firm’s products. This paper examines the effect of quality certification on energy efficiency in a particular low institutional quality environment, the four transition countries of Central Asia. Using a cost function model augmented with market structure variables, we find that firms that have quality certifications are indeed more efficient in their use of energy. Perhaps more importantly, we find that competition from the informal sector is also incredibly important to improved energy efficiency. The effect of certification also runs back to firm planning, as certified firms are more likely to focus on energy efficiency metrics rather than overall usage in planning for the future.

Date: 16.11.2022 14:30-15:30 hr CET - virtual

About the SDGnexus Network Seminar Series

The SDGnexus Network Seminar Series is dealing with topics related to research and teaching along the Sustainable Development Goals. Seminar Series are created for everybody interested in the SDG topic, the network offers the fantastic opportunity to union knowledge and experience from researchers across a variety of disciplines and regions.