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The energy efficiency paradox revisited through a partial observability approach

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Author Info
Kounetas, Kostas
Tsekouras, Kostas

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Abstract

The present paper examines the energy efficiency paradox demonstrated in Greek manufacturing firms through a partial observability approach. The data set used has resulted from a survey carried out among 161 energy-saving technology firm adopters. Maximum likelihood estimates that arise from an incidental truncation model reveal that the adoption of the energy-saving technologies is indeed strongly correlated to the returns of assets that are required in order to undertake the corresponding investments. The source of the energy efficiency paradox lies within a wide range of factors. Policy schemes that aim to increase the adoption rate of energy-saving technologies within the field of manufacturing are significantly affected by differences in the size of firms. Finally, mixed policies seem to be more effective than policies that are only capital subsidy or regulation oriented.

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Publisher Info
Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 30 (2008)
Issue (Month): 5 (September)
Pages: 2517-2536
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Handle: RePEc:eee:eneeco:v:30:y:2008:i:5:p:2517-2536

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  1. Théophile T. Azomahou & Raouf Boucekkine & Phu Nguyen-Vanc, . "Promoting Clean Technologies: The Energy Market Structure Crucially Matters," Working Papers 2008_13, Department of Economics, University of Glasgow. [Downloadable!]
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