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Declining Energy Intensity in the U.S. Manufacturing Sector

Claire P. Doblin

Year: 1988
Volume: Volume 9
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No2-8
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Abstract:
Since the first oil price shock of 1973 -74, there has been considerable reduction in total energy use per unit of total output. This development has many names: increasing energy conservation, demand elasticity, increasing energy productivity, or, conversely, decreasing energy intensity.



Testing for Barriers to Energy Conservation -- an Application of a Vintage Model

Alan Ingham, James Maw and Alistair Ulph

Year: 1991
Volume: Volume 12
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No4-3
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Abstract:
In this paper we use a sophisticated vintage model of the production structure of the U.K manufacturing sector to analyze the pattern of energy conservation over the period 1971-1987 and to test whether there is evidence of significant market imperfections which could act as barriers to energy conservation.



Interfuel Substitution and Energy Use in the U.K. Manufacturing Sector

Jevgenijs Steinbuks

Year: 2012
Volume: Volume 33
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol33-No1-1
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Abstract:
This paper investigates interfuel substitution, separately accounting for different types of energy use in the U.K. manufacturing sector. Econometric models of interfuel substitution are applied to aggregate energy use, as well as to a specific energy use process--thermal heating--where interfuel substitution is technologically feasible. Compared to the aggregate data, the estimated own-price elasticities for all fuels and the cross-price elasticities for fossil fuels are considerably higher for thermal heating processes. Nonetheless, electricity is found to be a poor substitute for other fuels based on both aggregate data and, separately, for the heating process. An increase in real fuel prices from the Climate Change Levy in 2001 resulted in higher substitution elasticities based on aggregate data, and lower substitution elasticities for the thermal heating process. The results of a counterfactual decomposition of change in the estimated elasticities indicate that technological change was the major determinant of the differences in observed elasticities before and after the energy price increase.

Keywords: Climate change levy, Elasticities, Energy use, Interfuel substitution, Manufacturing sector, United Kingdom





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