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The Role of Energy in Productivity Growth

Dale W. Jorgenson

Year: 1984
Volume: Volume 5
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No3-2
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Abstract:
The objective of this paper is to analyze the role of energy in the growth of productivity. The special significance of energy in economic growth was first established in the classic study Energy and the American Economy 1850-1975, by Schurr and his associates (1960) at Resources for the Future. From 1920 to 1955, Schurr noted, energy intensity of production had fallen while both labor and total factor productivity were rising.' The simultaneous decline of energy intensity and labor intensity of production could not be explained solely on the basis of substitution of less expensive energy for more expensive labor. Since the quantity of both energy and labor inputs required for a given level of output had been reduced, technical change would also be a critical explanatory factor.From 1920 to 1955 the utilization of electricity had expanded by a factor of more than ten, while consumption of all other forms of energy only doubled. The two key features of technical change during this period were that (1) the thermal efficiency of conversion of fuels into electricity increased by a factor of three, and (2) "the unusual characteristics of electricity had made it possible to perform tasks in altogether different ways than if the fuels had to be used directly."2 For example, as Schurr noted, the electrification of industrial processes had led to much greater flexibility in the application of energy to industrial production.



Residential Energy Use in the OECD

Lee Schipper and Andrea N. Ketoff

Year: 1985
Volume: Volume 6
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol6-No4-6
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Abstract:
In this article we describe the evolution of residential energy use in OECD countries over the 1970-1982 period. We focus on European countries but refer also to findings for the United States, Canada, and Japan. We quantify the changes in energy consumption (particularly those that occurred in response to the great price shocks of 1973-1974 and 1979-1981), assess the permanency of these changes through 1982, and speculate on trends through 1983 on the basis of preliminary data. This analysis summarizes the results of a continuing project (Schipper, Ketoff, and Kahane, 1985) to identify, analyze, and monitor residential energy use in nearly a dozen OECD countries (Canada, Denmark, France, West Germany, Italy, Japan, Norway, Sweden, the United Kingdom, and the United States).



Energy-Nonenergy Input Substitution in Western U.S. Agriculture: Some Findings

Chennat Gopalakrishnan

Year: 1987
Volume: Volume 8
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No1-9
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Abstract:
The crucial role of energy as an input in the production process has engaged the serious attention of energy planners and researchers in recent years. This was especially true after the OPEC oil embargo of 1973 and the natural gas shortages in the winter of 1976-1977. The prospect of similar energy supply disruptions and price escalations in the future has reinforced the need for adopting measures to reduce energy consumption.



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.



Choice of Technology and Long-Run Technical Change in Energy-Intensive Industries

Finn R. Forsund and Lennart Hjalmarsson

Year: 1988
Volume: Volume 9
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No3-3
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Abstract:
The difference between short-run and long-run flexibility in energy use is an important topic in energy demand modeling. Dynamic formulations are required to reveal this difference. The microeconomic foundation for the distinction between short- and long-run energy substitution possibilities is the embodiment of production techniques.



Output and Energy: An International Analysis

John R. Moroney

Year: 1989
Volume: Volume 10
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-1
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Abstract:
This paper analyzes the relationship between GNP per capita and energy consumption per capita for 43 market economies during the years 1978, 1979, and 1980. Several functional forms are analyzed. Specification tests establish that a double logarithmic equation is preferable to all others. Statistical estimates further indicate a distinct pattern of diminishing real income response to greater per capita energy consumption. Advanced economies with relatively low-cost energy (Canada, Norway, the U.S.A.) exhibit practically identical per capita incomes as industrialized nations with higher-cost energy (Sweden, France, and the Federal Republic of Germany).



CO2 Emissions from Major Developing Countries: Better Understanding the Role of Energy in the Long Term

Jayant Sathaye and Andrea Ketof

Year: 1991
Volume: Volume 12
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No1-10
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Abstract:
This paper analyzes projected carbon dioxide emissions from the developing countries in 2025. The paper is based on analyses of energy use patterns, today and in the future, for nine major developing countries. These countries account for over two-thirds of the energy related emissions from the developing world The analysis indicates that emissions from these countries increase fourfold by 2025, but policies aimed to reduce emissions curtail them to a threefold increase. Further, more than three -quarters of the reduction in carbon emissions are achieved through efficiency improvements and the remaining improvements are achieved through fuel switching. Industry contributes the most to carbon emissions, followed by the transport and residential sectors. Transport displays the largest relative potential for carbon reduction (33%). The economic growth rates to which each country aspires increase oil demand from 7 million barrels today to 25 million barrels by 2025. While this level may not strain world oil supply, individual countries may not be able to import oil because of foreign exchange constraints. Thus despite efficiency improvements and fuel switching energy demand and carbon emissions from the developing countries increase severalfold by 2025.



Manufacturing Energy Use in Eight OECD Countries: Trends through 1988

Richard B. Howarth and Lee Schipper

Year: 1991
Volume: Volume 12
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No4-2
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Abstract:
This paper reviews the evolution of manufacturing energy use in eight industrialized nations: West Germany, Denmark, France, Japan, Norway, Sweden, the United Kingdom, and the United States. Manufacturing energy use fell in these nations by 16% between 1973 and 1988 while manufacturing value-added increased by 41%. Reduced energy intensities in six industry groups -- paper and pulp; chemicals; stone, clay and glass; iron and steel; nonferrous metals; and other manufacturing -- were the primary source of this apparent decoupling of energy use and output. Between 1973 and 1988, intensity reductions would have driven down sectoral energy use by 32% if the level and composition of output had remained constant. Structural change, or shifts in the product mi, would have reduced energy use by 11% if the total level of output and the energy intensities of each industry group had remained constant.



The Structure and Intensity of Energy Use: Trends in Five OECD Nations

Richard B. Howarth, Lee Schipper, and Bo Andersson

Year: 1993
Volume: Volume 14
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No2-2
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Abstract:
Ths paper examines trends in the structure and intensity of final energy demand in five OECD nations between 1973 and 1988. Our focus is on primary energy use, which weights fuels by their thermal content and multiplies district heat and electricity by factors of 1.15 and 3.24 to approximate the losses that occur in the conversion and distribution of these energy carriers. Growth in the level of energy-using activities, given 1973 energy intensities (energy use per unit of activity), would have raised primary energy use by 46% in the U. S., 42%, in Norway, 33% in Denmark, 37% in West Germany, and 53% in Japan. Reductions in end-use energy intensities, given 1973 activity levels, would have reduced primary energy use by 19% in the U.S., 3% in Norway, 20% in Denmark, 15% in West Germany, and 14% in Japan. Growth in national income paralelled increases in a weighted index of energy-using activities in the U. S., West Germany, and Denmark but substantially outstripped activity growth in Norway and Japan. We conclude that changes in the structure of a nations economy may lead to substantial changes in its energy/GDP ratio that art? unrelated to changes in the technical efficiency of energy utilization. Similarly, changes in energy intensities may be greater or less than the aggregate change in the energy/GDP ratio of a given country, a further warning that this ratio may be an unreliable indicator of technical efficiency.



Energy Consumption and Economic Activity in China

Chuanlong Tang and Sumner J. La Croix

Year: 1993
Volume: Volume14
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No4-2
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Abstract:
This paper uses province-level cross-section data to explore the relationship between energy consumption and economic activity in China. Our key finding is that the income elasticity of energy consumption is approximately 1.0. When a province exports energy or has significant amounts of heavy industry, its energy consumption is higher. However, income elasticities are similar across energy exporting and -importing provinces. Energy consumption is lower in coastal provinces than inland provinces, but the income elasticity is higher in the rapidly developing coastal provinces. We conclude that China's economy is unlikely to become significantly more energy-intensive during the 1990s.




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