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Structural change and convergence of energy intensity across OECD countries, 1970–2005

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  • Mulder, Peter
  • de Groot, Henri L.F.

Abstract

This paper uses new and unique data derived from a consistent framework of national accounts to compute and evaluate energy intensity developments across 18 OECD countries and 50 sectors over the period 1970–2005. We find that across countries energy intensity levels tend to decrease in most Manufacturing sectors. In the Service sector, energy intensity decreases at a relatively slow rate, with diverse trends across sub-sectors. A decomposition analysis reveals that changes in the sectoral composition of the economy explain a considerable and increasing part of aggregate energy intensity dynamics. A convergence analysis reveals that only after 1995 cross-country variation in aggregate energy intensity levels clearly tends to decrease, driven by a strong and robust trend break in Manufacturing and enhanced convergence in Services. Moreover, we find evidence for the hypothesis that across sectors lagging countries are catching-up with leading countries, with rates of convergence that are on average higher in Services than in Manufacturing. Aggregate convergence patterns are almost exclusively caused by convergence of within-sector energy intensity levels, and not by convergence of the sectoral composition of economies.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 34 (2012)
Issue (Month): 6 ()
Pages: 1910-1921

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Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1910-1921

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Web page: http://www.elsevier.com/locate/eneco

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Keywords: Energy intensity; Convergence; Decomposition; Sectoral analysis;

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Cited by:
  1. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
  2. Wang, Chunhua, 2013. "Changing energy intensity of economies in the world and its decomposition," Energy Economics, Elsevier, vol. 40(C), pages 637-644.
  3. Vinod Mishra & Russell Smyth, 2014. "Convergence in energy consumption per capita among ASEAN countries," Development Research Unit Working Paper Series 22-14, Monash University, Department of Economics.
  4. Hannah Förster & Katja Schumacher & Enrica De Cian & Michael Hübler & Ilkka Keppo & Silvana Mima & Ronald D. Sands, 2014. "European Energy Efficiency and Decarbonization Strategies Beyond 2030 – A Sectoral Multi-model Decomposition," Working Papers 2014.27, Fondazione Eni Enrico Mattei.
  5. Gustavo A. Marrero & Francisco J. Ramos-Real, 2013. "Activity Sectors and Energy Intensity: Decomposition Analysis and Policy Implications for European Countries (1991–2005)," Energies, MDPI, Open Access Journal, vol. 6(5), pages 2521-2540, May.
  6. Emanuele Campiglio, 2013. "The structural shift to green services: A twosector growth model with public capital and open-access resources," Grantham Research Institute on Climate Change and the Environment Working Papers 141, Grantham Research Institute on Climate Change and the Environment.
  7. Schymura, Michael & Voigt, Sebastian, 2014. "What drives changes in carbon emissions? An index decomposition approach for 40 countries," ZEW Discussion Papers 14-038, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Peter Mulder & Henri L.F. de Groot & Birte Pfeiffer, 2013. "Dynamics and Determinants of Energy Intensity in the Service Sector: A Cross-Country Analysis, 1980–2005," Tinbergen Institute Discussion Papers 13-175/VIII, Tinbergen Institute.

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