Inhaltspezifische Aktionen

27.03.2023 - Just published: Energy Efficiency, Market Competition, and Quality Certification: Lessons from Central Asia

Dr. Vladimir Otrachshenko, a research associate at the Centre for International Development and Environmental Research (ZEU), Justus Liebig University Giessen, in cooperation with Prof. Dr. Christopher Hartwell and Dr. Olga Popova, have been published a study in the journal Energy Policy on the impact of quality certification on energy efficiency in a particularly low institutional quality environment, the four transition countries of Central Asia.

Highlights:

  • The study sheds light on the factors driving the increased energy efficiency in Central Asia, with a particular focus on the impact of quality certification on energy intensity.
  • The research provides alternative energy use indicators, including whether firms have measures in place to enhance energy efficiency, whether they monitor energy use, and whether they have energy use targets.
  • The study also identifies the mechanisms by which quality certification affects energy efficiency, including product and process improvements, and the types of energy use targets firms pursue (quantity, expenditure, or both).
  • The findings suggest that informal market competition is an important factor at a firm-level energy use, particularly in developing and emerging economies where the informal market plays a significant role.

Abstract

Energy efficiency at the firm level is determined 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 particularly low institutional quality environment, the four transition countries of Central Asia. Using firm-level data and controlling for other determinants of energy intensity, 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.

The full paper is available for reading until May 4, 2023.

Reference: Otrachshenko, V., Hartwell, C. A., & Popova, O. (2023). Energy efficiency, market competition, and quality certification: Lessons from Central Asia. Energy Policy, 177, 113539. https://doi.org/10.1016/j.enpol.2023.113539

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