POLICY RESEARCH WORKING PAPER11069Energy Prices,Energy Intensity,and Firm PerformanceReyes AteridoMariana loottyMartin MeleckyWORLD BANK GROUPFinance,Competitiveness and Innovation Global DepartmentFebruary 2025POLICY RESEARCH WORKING PAPER 11069AbstractThis paper estimates the effect of electricity prices on firmsimilar firms in energy-non-intensive sectors.In parallel,performance,focusing on firm productivity,sales,andenergy-intensive firms may increase sales and productiv-employment.Using the World Bank Business Pulse Surveyity but this result is robust to all alternative specifications.data for a sample of 24 emerging markets and developingFirms may increase sales while reducing employment afterenergy price hikes,by adopting energy-efficient technolo-gies and by passing through costs to consumers in inelasticing energy intensity and firms that implemented (or did notmarkets while reducing employment in energy-intensiveimplement)energy efficiency measures(self-reported in thesectors due to cost pressures.These results highlight theBusiness Pulse Survey).The findings show that increasingdectricity prices by 1 percent reduces employment at firmsin energy-intensive industries that did not adopt energywith future volatility in energy (electricity)prices.efficiency measures by about 1.5 percent,compared withThis paper is a product of the Finance,Competitiveness and Innovation Global Department.It is part of a larger effort bythe World Bank to provide open access to its research and make a contribution to development policy discussions aroundthe world.Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp.The authorsmay be contacted at mmelecky@worldbank.org,miootty@worldbank.org,and raterido@worldbank.org.Produced by the Research Support Team