The impact of energy prices on industrial investment location: Evidence from global firm level data
研究了41个国家间相对能源价格如何影响工业投资的地理分布，发现两国能源价格差每增加10%，跨境并购增加3.2%，对能源密集型行业和新兴经济体目标影响最大。
This study examines the influence of relative energy prices on the geographical distribution of industrial investments across 41 countries. Employing a gravity model framework to analyse firms’ investment location decisions, we estimate the model using global bilateral investment flows derived from firm-level M&A data. Our findings reveal that a 10% increase in the energy price differential between two countries results in a 3.2% rise in cross-border acquisitions. This effect is most pronounced in energy-intensive industries and transactions targeting emerging economies. Furthermore, policy simulations suggest that the impact of unilateral carbon pricing on cross-border investments is modest.