PUBLICATIONS & REPORTS

PUBLICATIONS & REPORTS

Do Multinationals Use Water and Energy Relatively Efficiently in Malaysian Manufacturing?

Author Eric D. Ramstetter, Shahrazat Binti Haji Ahmad
Date of Publication 2012. 11
No. 2012-13
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Contents Introduction

This paper examines water and energy efficiency differentials between foreign multinational enterprises (MNEs) and local plants in Malaysian manufacturing using data on medium-large plants from the industrial census for 2000 and sample surveys for 2001-2004. Both descriptive statistics and results of econometric estimation indicate that MNEs had a moderate tendency to use relatively little fuel, which was relatively dirty source of energy during this period in Malaysia. MNEs also had a weak tendency to have high electricity intensities as well as low total energy and water intensities. However, differences in energy and water intensities between MNEs and local plants were not very pervasive or consistent over time, suggesting that both MNEs and local plants generally used energy and water with similar efficiency.