Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Proponents of energy service companies (<italic>ESCO</italic>s) argue that these firms provide a crucial instrument for delivering improved energy efficiency in public and private sectors, thus contributing to carbon dioxide (CO<sub>2</sub>) emission reduction around the world. Do <italic>ESCO</italic>s reduce CO<sub>2</sub> emissions? To answer this question, we develop an estimating equation, which approximates the IPAT model, from a simple model of production. We estimate a dynamic panel of 129 countries over the period 1980--2007 to show that the <italic>ESCO</italic>s effectively reduce CO<sub>2</sub> emissions and that this effect increases over time. These findings also prove robust to the inclusion of a set of control variables, different dates of the first <italic>ESCO</italic> and the Kyoto Protocol. Finally, we discuss energy policy implications.