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Structural Changes and Energy Consumption in the Japanese Economy 1975-95: An Input-Output Analysis

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  • Xiaoli Han
  • TK. Lakshmanan
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    Abstract

    This paper analyzes the effects of the pervasive structural changes in the Japanese economy on its energy intensity in the decade 1975-85. It advances the energy input-output (I-O) structural decomposition analysis (SDA) in two ways. First, it introduces a double denominator method to relax the assumption that all electricity is derived from fossil fuels in energy I-O analysis. Second, it develops a model which identifies explicitly the effect of energy imports. The application of our model to the Japanese experience suggested that changes in final demand structure contributed more to reducing the energy intensity of the economy than the much discussed effects of changes in technology. The overall decline in the energy intensity of the economy was accompanied by drastic shifts in the fuel mix of its energy supply, in particular, a substitution of oil by natural gas.

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    Bibliographic Info

    Article provided by International Association for Energy Economics in its journal The Energy Journal.

    Volume (Year): Volume15 (1994)
    Issue (Month): Number 3 ()
    Pages: 165-188

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    Handle: RePEc:aen:journl:1994v15-03-a09

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    Cited by:
    1. Chai, Jian & Guo, Ju-E & Wang, Shou-Yang & Lai, Kin Keung, 2009. "Why does energy intensity fluctuate in China?," Energy Policy, Elsevier, vol. 37(12), pages 5717-5731, December.
    2. Llop, Maria, 2007. "Economic structure and pollution intensity within the environmental input-output framework," Energy Policy, Elsevier, vol. 35(6), pages 3410-3417, June.
    3. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    4. Okushima, Shinichiro & Tamura, Makoto, 2007. "Multiple calibration decomposition analysis: Energy use and carbon dioxide emissions in the Japanese economy, 1970-1995," Energy Policy, Elsevier, vol. 35(10), pages 5156-5170, October.
    5. Huanbo Zhang & Ye Qi, 2011. "A Structure Decomposition Analysis of China’s Production-Source CO 2 Emission: 1992–2002," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(1), pages 65-77, May.
    6. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    7. Shrestha, Ram M. & Marpaung, Charles O.P., 2006. "Integrated resource planning in the power sector and economy-wide changes in environmental emissions," Energy Policy, Elsevier, vol. 34(18), pages 3801-3811, December.

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