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Assessing the influence of manufacturing sectors on electricity demand. A cross-country input-output approach

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  • Tarancón, Miguel Angel
  • del Río, Pablo
  • Callejas Albiñana, Fernando

Abstract

The production and consumption of electricity is a major source of CO2 emissions in Europe and elsewhere. In turn, the manufacturing sectors are significant end-users of electricity. In contrast to most papers in the literature, which focus on the supply-side, this study tackles the demand-side of electricity. An input-output approach combined with a sensitivity analysis has been developed to analyse the direct and indirect consumptions of electricity by eighteen manufacturing sectors in fifteen European countries, with indirect electricity demand related to the purchase of industrial products from other sectors which, in turn, require the consumption of electricity in their manufacturing processes. We identify the industrial transactions and sectors, which account for a greater share of electricity demand. In addition, the impact of an electricity price increase on the costs and prices of manufacturing products is simulated through a price model, allowing us to identify those sectors whose manufacturing costs are most sensitive to an increase in the electricity price.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 4 (April)
Pages: 1900-1908

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Handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1900-1908

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

Related research

Keywords: Electricity demand Input-output Sensitivity analysis;

References

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  1. Jordi Roca Jusmet & Monica Serrano Gutierrez, 2006. "Income Growth and Atmospheric Pollution in Spain: An Input-Output Approach," Working Papers in Economics 164, Universitat de Barcelona. Espai de Recerca en Economia.
  2. Ferng, Jiun-Jiun, 2003. "Allocating the responsibility of CO2 over-emissions from the perspectives of benefit principle and ecological deficit," Ecological Economics, Elsevier, vol. 46(1), pages 121-141, August.
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  14. Mongelli, I. & Tassielli, G. & Notarnicola, B., 2006. "Global warming agreements, international trade and energy/carbon embodiments: an input-output approach to the Italian case," Energy Policy, Elsevier, vol. 34(1), pages 88-100, January.
  15. Rutger Hoekstra & Marco Janssen, 2006. "Environmental responsibility and policy in a two-country dynamic input-output model," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 61-84.
  16. Liddle, Brantley, 2009. "Electricity intensity convergence in IEA/OECD countries: Aggregate and sectoral analysis," Energy Policy, Elsevier, vol. 37(4), pages 1470-1478, April.
  17. Lenzen, Manfred, 1998. "Primary energy and greenhouse gases embodied in Australian final consumption: an input-output analysis," Energy Policy, Elsevier, vol. 26(6), pages 495-506, May.
  18. Butnar, Isabela & Llop, Maria, 2007. "Composition of greenhouse gas emissions in Spain: An input-output analysis," Ecological Economics, Elsevier, vol. 61(2-3), pages 388-395, March.
  19. Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
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Citations

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Cited by:
  1. di Cosmo, Valeria & Hyland, Marie, 2013. "Decomposing patterns of emission intensity in the EU and China: how much does trade matter?," Papers WP462, Economic and Social Research Institute (ESRI).
  2. Buñuel González, Miguel, 2011. "El precio de la electricidad y la política de cambio climático: ¿qué papel puede jugar un impuesto sobre el carbono en España? /The Price of Electricity and Climate Change Policy: What Role May a," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 663 (18 pag, Agosto.
  3. Akkemik, K. Ali, 2011. "Potential impacts of electricity price changes on price formation in the economy: a social accounting matrix price modeling analysis for Turkey," Energy Policy, Elsevier, vol. 39(2), pages 854-864, February.

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