Directed Technical Change and Energy Intensity Dynamics: Structural Change vs. Energy Efficiency

This paper uses a model with Directed Technical Change to theoretically analyse observable heterogeneous energy intensity developments. Based on the empirical evidence, we decompose changes in aggregate energy intensity into structural changes in the economy (structural effect) and within-sector ene...

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Detalles Bibliográficos
Publicado en:MAGKS - Joint Discussion Paper Series in Economics (Band 10-2016)
Autores principales: Haas, Christian, Kempa, Karol
Formato: Artículo
Lenguaje:inglés
Publicado: Philipps-Universität Marburg 2016
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Acceso en línea:Texto Completo PDF
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Sumario:This paper uses a model with Directed Technical Change to theoretically analyse observable heterogeneous energy intensity developments. Based on the empirical evidence, we decompose changes in aggregate energy intensity into structural changes in the economy (structural effect) and within-sector energy efficiency improvements (effciency effect). The relative importance of these effects is determined by energy price growth and sectoral productivities that drive the direction of technical change. When research is directed to the labour-intensive sector, the structural effect is the main driver of energy intensity dynamics. In contrast, the effciency effect dominates energy intensity developments, when research is directed to energy-intensive industries. Increasing energy price generally leads to lower energy intensities and temporal energy price shocks might induce a permanent redirection of innovation activities. We calibrate the model to empirical data and simulate energy intensity developments across countries. The results of our very stylised model are largely consistent with empirical evidence.
Descripción Física:47 Seiten
ISSN:1867-3678
DOI:10.17192/es2024.0513