Engine Run, Quality Enhance: Examining the Effects of Energy Steady Supply on Chinese Export Product Quality
Published online on July 09, 2026
Abstract
["The World Economy, EarlyView. ", "\nABSTRACT\nOil is the lifeblood of industry, serving as the core source of power for the operation of industrial machinery. Ensuring its stable supply is crucial for the smooth production process, which in turn is a key determinant in enhancing the quality of export products for enterprises. This study empirically examines the impact of energy supply on the quality of export products and the mechanism of its effect by using a staggered difference‐in‐differences (DID) method with the implementation of China's West‐to‐East Oil Transportation Project as a quasi‐natural experiment. The empirical results show that a dependable energy supply substantially boosts the quality of goods produced for export by various companies. The mechanism analysis shows that energy supply improves export product quality through enterprise performance improvement effects, industry agglomeration effects and supply chain stabilization effects, and it mainly improves export product quality in energy‐importing regions, technology‐intensive industries, private enterprises, and general trade enterprises. Further analysis reveals that a stable supply of energy helps enhance the sustainability of enterprise exports while helping enterprises realize value chain upgrading, helping China get rid of the curse of locking the bottom of the export value chain. The findings of this study help clarify the intrinsic mechanism between energy supply and export product quality and provide an empirical basis for the cross‐regional energy dispatch strategy to help China's export value chain upgrade.\n"]