Joint work with Naoto Jinji.

Abstract

Using Japanese firm-level data, we investigate the firm-level relationship between export status and environmental performance in terms of carbon dioxide (CO2) emissions intensity and energy intensity. As in previous studies, we first find that exporting firms have significantly lower CO2 emissions/energy intensity. We then investigate the effects of exporting on CO2 emissions/energy intensity by employing the propensity score matching (PSM) method, and find that the effects significantly vary across industries. Whereas exporting significantly improves environmental performance in most industries, exporting actually increases CO2 emissions/energy intensity in the iron & steel industry. This finding suggests that the effect of exporting varies across industries.