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How does energy supply affect firm production behavior?-Evidence from the product level
Zhili Du1, Jie Xu1, Boqiang Lin2
1School of Management, China Institute for Studies in Energy Policy, Collaborative Innovation Center for Energy Economics and Energy Policy, Xiamen University, Fujian, 361005, China.
Journal of Environmental Management
|November 19, 2025
Summary
The West-East Gas Transmission (WEGT) Project enhances enterprise production efficiency by optimizing energy use and product mix. This leads to economic gains while improving environmental outcomes.
Area of Science:
- Energy Economics
- Industrial Organization
- Environmental Policy
Background:
- Consistent energy supply is crucial for production levels and enterprise efficiency.
- The West-East Gas Transmission (WEGT) Project aims to improve clean energy supply and production efficiency.
- Understanding the impact of energy supply on firm-level production is essential.
Purpose of the Study:
- To investigate how energy supply variations influence firm production behavior at the product level.
- To assess the impact of the WEGT Project on enterprise energy use and production efficiency.
- To evaluate the relationship between energy infrastructure, economic efficiency, and environmental responsibility.
Main Methods:
- Analysis of firm-level production data in relation to energy supply changes.
- Evaluation of the WEGT Project's impact on enterprise energy consumption patterns.
- Assessment of changes in product mix as an indicator of production efficiency.
Main Results:
- The WEGT Project significantly optimizes the energy use structure within enterprises.
- Enhanced production efficiency is observed through a refined product range, focusing on core products.
- Enterprises along the WEGT route show improved environmental performance due to optimized production.
Conclusions:
- Infrastructure development, like the WEGT Project, can drive enterprise-wide optimization of energy structures and production efficiency.
- Economic efficiency can be achieved concurrently with environmental protection and social responsibility.
- The study provides a valuable framework for evaluating energy dispatching strategies and infrastructure investments.
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