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Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach

The demand for energy is normally broken down into five sectors: industry, utilities, the residential sector, the commercial sector, and transportation. Industry is the most heterogeneous of these with manufacturing accounting for about 80 percent of total industrial energy demand. Manufacturing is itself a very heterogeneous collection of production activities. As defined by the Standard Industrial Classification (SIC) method of the U.S. Department of Commerce, there were 448 manufacturing sectors in 1972.

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Energy Specializations: Energy Modeling – Sectoral Energy Demand & Technology; Energy Efficiency

JEL Codes:
Q55 - Environmental Economics: Technological Innovation

Keywords: Manufacturing, US, Energy efficiency, Divisia index, Decomposition

DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No2-6

Published in Volume 8, Number 2 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.