Publication

Based on a detailed firm data set on the German manufacturing sector, this study performs a decomposition analysis of industrial CO2 emissions. Building on this micro dataset, the author identifies the effects of intra-sectoral competition and energy efficiency improvements on the firm level, additional to the effects of changes in economic activity, sectoral structure, fuel mix, and emission factors. The results underline the importance of competition between firms for energy efficiency improvements. Contrary to wide-spread beliefs, however, energy intensity improvements at the firm level do not play a significant role in reducing emissions.