IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v9y2016i7p488-d72680.html
   My bibliography  Save this article

Insights on Energy Transitions in Mexico from the Analysis of Useful Exergy 1971–2009

Author

Listed:
  • Zeus Guevara

    (Institute of Economic Research, National Autonomous University of Mexico, Circuito Mario de la Cueva s/n, Ciudad Universitaria, Mexico City 04510, Mexico)

  • Tânia Sousa

    (Marine, Environment and Technology Centre—MARETEC, Department of Mechanical Engineering, Instituto Superior Técnico, Universidade de Lisboa, Avenida Rovisco Pais, 1, Lisbon 1049-001, Portugal)

  • Tiago Domingos

    (Marine, Environment and Technology Centre—MARETEC, Department of Mechanical Engineering, Instituto Superior Técnico, Universidade de Lisboa, Avenida Rovisco Pais, 1, Lisbon 1049-001, Portugal)

Abstract

The analysis of useful exergy (UE), which is the minimum amount of work required to produce a given end-use, provides insights on the relationships between structural changes and energy transitions because it focuses on what energy is used for, i.e., energy services, rather than where it comes from, i.e., energy carriers. In this paper, UE was accounted for Mexico in 1971–2009. It was found that UE experienced a six-fold growth, led by the increasing share of mechanical drive and electric energy uses. Structural changes such as industrialization and complete electrification mainly drove UE transitions. Technological progress, mainly driven by the industrial sector, and electricity availability caused an improvement in the aggregate final-to-useful efficiency of the economy. In addition, the trend of increasing UE economic intensity shows that Mexico became more dependent on UE per unit of economic output during industrialization. The results suggest that UE trends were more influenced by structural transitions while final exergy trends were more influenced by economic fluctuations. It is concluded that energy policy design in developing countries undergoing or starting the process of industrialization should focus on: (1) improvements in final-to-useful efficiency, especially of the transportation sector and (2) growth of the productivity of UE.

Suggested Citation

  • Zeus Guevara & Tânia Sousa & Tiago Domingos, 2016. "Insights on Energy Transitions in Mexico from the Analysis of Useful Exergy 1971–2009," Energies, MDPI, vol. 9(7), pages 1-29, June.
  • Handle: RePEc:gam:jeners:v:9:y:2016:i:7:p:488-:d:72680
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/9/7/488/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/9/7/488/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert U. Ayres & Benjamin Warr, 2009. "The Economic Growth Engine," Books, Edward Elgar Publishing, number 13324.
    2. Miguel Palma & Tânia Sousa & Zeus Guevara, 2016. "How Much Detail Should We Use to Compute Societal Aggregated Exergy Efficiencies?," Energies, MDPI, vol. 9(5), pages 1-13, May.
    3. Sheinbaum, Claudia & Rodriguez, Luis, 1997. "Recent trends in Mexican industrial energy use and their impact on carbon dioxide emissions," Energy Policy, Elsevier, vol. 25(7-9), pages 825-831.
    4. M. Shahid Alam, 2009. "Bringing Energy Back into the Economy," Review of Radical Political Economics, Union for Radical Political Economics, vol. 41(2), pages 170-185, June.
    5. Wolde-Rufael, Yemane, 2005. "Energy demand and economic growth: The African experience," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 891-903, November.
    6. Serrenho, André Cabrera & Sousa, Tânia & Warr, Benjamin & Ayres, Robert U. & Domingos, Tiago, 2014. "Decomposition of useful work intensity: The EU (European Union)-15 countries from 1960 to 2009," Energy, Elsevier, vol. 76(C), pages 704-715.
    7. Sheinbaum, Claudia & Ozawa, Leticia, 1998. "Energy use and CO2 emissions for Mexico's cement industry," Energy, Elsevier, vol. 23(9), pages 725-732.
    8. Robert B. Barsky & Lutz Kilian, 2004. "Oil and the Macroeconomy Since the 1970s," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 115-134, Fall.
    9. Recalde, Marina & Ramos-Martin, Jesús, 2012. "Going beyond energy intensity to understand the energy metabolism of nations: The case of Argentina," Energy, Elsevier, vol. 37(1), pages 122-132.
    10. Rubio, M.d.Mar & Folchi, Mauricio, 2012. "Will small energy consumers be faster in transition? Evidence from the early shift from coal to oil in Latin America," Energy Policy, Elsevier, vol. 50(C), pages 50-61.
    11. Ayres, Robert U. & Ayres, Leslie W. & Pokrovsky, Vladimir, 2005. "On the efficiency of US electricity usage since 1900," Energy, Elsevier, vol. 30(7), pages 1092-1145.
    12. Grubler, Arnulf, 2012. "Energy transitions research: Insights and cautionary tales," Energy Policy, Elsevier, vol. 50(C), pages 8-16.
    13. Lin,Justin Yifu, 2009. "Economic Development and Transition," Cambridge Books, Cambridge University Press, number 9780521514521.
    14. Sheinbaum, C. & Martínez, M. & Rodríguez, L., 1996. "Trends and prospects in Mexican residential energy use," Energy, Elsevier, vol. 21(6), pages 493-504.
    15. Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
    16. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    17. Warr, Benjamin & Schandl, Heinz & Ayres, Robert U., 2008. "Long term trends in resource exergy consumption and useful work supplies in the UK, 1900 to 2000," Ecological Economics, Elsevier, vol. 68(1-2), pages 126-140, December.
    18. Jiang, Zhujun & Lin, Boqiang, 2012. "China's energy demand and its characteristics in the industrialization and urbanization process," Energy Policy, Elsevier, vol. 49(C), pages 608-615.
    19. Ayres, Robert U & Ayres, Leslie W & Warr, Benjamin, 2003. "Exergy, power and work in the US economy, 1900–1998," Energy, Elsevier, vol. 28(3), pages 219-273.
    20. Bithas, K. & Kalimeris, P., 2013. "Re-estimating the decoupling effect: Is there an actual transition towards a less energy-intensive economy?," Energy, Elsevier, vol. 51(C), pages 78-84.
    21. Reynolds, Clark W., 1978. "Why Mexico's `stabilizing development' was actually destabilizing (with some implications for the future)," World Development, Elsevier, vol. 6(7-8), pages 1005-1018.
    22. Rühl, Christof & Appleby, Paul & Fennema, Julian & Naumov, Alexander & Schaffer, Mark, 2012. "Economic development and the demand for energy: A historical perspective on the next 20 years," Energy Policy, Elsevier, vol. 50(C), pages 109-116.
    23. Sheinbaum, Claudia & Ruíz, Belizza J. & Ozawa, Leticia, 2011. "Energy consumption and related CO2 emissions in five Latin American countries: Changes from 1990 to 2006 and perspectives," Energy, Elsevier, vol. 36(6), pages 3629-3638.
    24. Ockwell, David G., 2008. "Energy and economic growth: Grounding our understanding in physical reality," Energy Policy, Elsevier, vol. 36(12), pages 4600-4604, December.
    25. Warr, B.S. & Ayres, R.U., 2010. "Evidence of causality between the quantity and quality of energy consumption and economic growth," Energy, Elsevier, vol. 35(4), pages 1688-1693.
    26. Costantini, Valeria & Martini, Chiara, 2010. "The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data," Energy Economics, Elsevier, vol. 32(3), pages 591-603, May.
    27. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    28. Aguayo, Francisco & Gallagher, Kevin P., 2005. "Economic reform, energy, and development: the case of Mexican manufacturing," Energy Policy, Elsevier, vol. 33(7), pages 829-837, May.
    29. Warr, Benjamin & Ayres, Robert & Eisenmenger, Nina & Krausmann, Fridolin & Schandl, Heinz, 2010. "Energy use and economic development: A comparative analysis of useful work supply in Austria, Japan, the United Kingdom and the US during 100Â years of economic growth," Ecological Economics, Elsevier, vol. 69(10), pages 1904-1917, August.
    30. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    31. Serrenho, André Cabrera & Warr, Benjamin & Sousa, Tânia & Ayres, Robert U. & Domingos, Tiago, 2016. "Structure and dynamics of useful work along the agriculture-industry-services transition: Portugal from 1856 to 2009," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 1-21.
    32. Antonio Aspra, L., 1977. "Import substitution in Mexico: Past and present," World Development, Elsevier, vol. 5(1-2), pages 111-123.
    33. Chontanawat, Jaruwan & Hunt, Lester C. & Pierse, Richard, 2008. "Does energy consumption cause economic growth?: Evidence from a systematic study of over 100 countries," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 209-220.
    34. Cullen, Jonathan M. & Allwood, Julian M., 2010. "Theoretical efficiency limits for energy conversion devices," Energy, Elsevier, vol. 35(5), pages 2059-2069.
    35. Dimitropoulos, John, 2007. "Energy productivity improvements and the rebound effect: An overview of the state of knowledge," Energy Policy, Elsevier, vol. 35(12), pages 6354-6363, December.
    36. Feng, Taiwen & Sun, Linyan & Zhang, Ying, 2009. "The relationship between energy consumption structure, economic structure and energy intensity in China," Energy Policy, Elsevier, vol. 37(12), pages 5475-5483, December.
    37. Dincer, Ibrahim, 2002. "The role of exergy in energy policy making," Energy Policy, Elsevier, vol. 30(2), pages 137-149, January.
    38. Worrell, Ernst & Price, Lynn & Martin, Nathan & Farla, Jacco & Schaeffer, Roberto, 1997. "Energy intensity in the iron and steel industry: a comparison of physical and economic indicators," Energy Policy, Elsevier, vol. 25(7-9), pages 727-744.
    39. Kahrl, Fredrich & Roland-Holst, David, 2009. "Growth and structural change in China's energy economy," Energy, Elsevier, vol. 34(7), pages 894-903.
    40. Berndt, Ernst R. & Botero, German, 1985. "Energy demand in the transportation sector of Mexico," Journal of Development Economics, Elsevier, vol. 17(3), pages 219-238, April.
    41. Benjamin Cheng, 1997. "Energy consumption and economic growth in Brazil, Mexico and Venezuela: a time series analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(11), pages 671-674.
    42. Roger Fouquet & Peter J.G. Pearson, 2006. "Seven Centuries of Energy Services: The Price and Use of Light in the United Kingdom (1300-2000)," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 139-178.
    43. Sheinbaum, Claudia & Ozawa, Leticia & Castillo, Daniel, 2010. "Using logarithmic mean Divisia index to analyze changes in energy use and carbon dioxide emissions in Mexico's iron and steel industry," Energy Economics, Elsevier, vol. 32(6), pages 1337-1344, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Sakai & Paul E. Brockway & John R. Barrett & Peter G. Taylor, 2018. "Thermodynamic Efficiency Gains and their Role as a Key ‘Engine of Economic Growth’," Energies, MDPI, vol. 12(1), pages 1-14, December.
    2. Ricardo Manso & Tânia Sousa & Tiago Domingos, 2017. "Do the Different Exergy Accounting Methodologies Provide Consistent or Contradictory Results? A Case Study with the Portuguese Agricultural, Forestry and Fisheries Sector," Energies, MDPI, vol. 10(8), pages 1-31, August.
    3. Zeus Guevara & Oscar Córdoba & Edith X. M. García & Rafael Bouchain, 2017. "The Status and Evolution of Energy Supply and Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach †," Economies, MDPI, vol. 5(1), pages 1-17, March.
    4. Guevara, Zeus & Domingos, Tiago, 2017. "Three-level decoupling of energy use in Portugal 1995–2010," Energy Policy, Elsevier, vol. 108(C), pages 134-142.
    5. Raúl Arango-Miranda & Robert Hausler & Rabindranarth Romero-López & Mathias Glaus & Sara Patricia Ibarra-Zavaleta, 2018. "An Overview of Energy and Exergy Analysis to the Industrial Sector, a Contribution to Sustainability," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    6. Raúl Arango-Miranda & Robert Hausler & Rabindranarth Romero-Lopez & Mathias Glaus & Sara P. Ibarra-Zavaleta, 2018. "Carbon Dioxide Emissions, Energy Consumption and Economic Growth: A Comparative Empirical Study of Selected Developed and Developing Countries. “The Role of Exergy”," Energies, MDPI, vol. 11(10), pages 1-16, October.
    7. Sousa, Tânia & Brockway, Paul E. & Cullen, Jonathan M. & Henriques, Sofia Teives & Miller, Jack & Serrenho, André Cabrera & Domingos, Tiago, 2017. "The Need for Robust, Consistent Methods in Societal Exergy Accounting," Ecological Economics, Elsevier, vol. 141(C), pages 11-21.
    8. Laura Felício & Sofia T. Henriques & André Serrenho & Tiago Domingos & Tânia Sousa, 2019. "Insights from Past Trends in Exergy Efficiency and Carbon Intensity of Electricity: Portugal, 1900–2014," Energies, MDPI, vol. 12(3), pages 1-22, February.
    9. Matthew Kuperus Heun & Zeke Marshall & Emmanuel Aramendia & Paul E. Brockway, 2020. "The Energy and Exergy of Light with Application to Societal Exergy Analysis," Energies, MDPI, vol. 13(20), pages 1-24, October.
    10. Kalimeris, Panos & Bithas, Kostas & Richardson, Clive & Nijkamp, Peter, 2020. "Hidden linkages between resources and economy: A “Beyond-GDP” approach using alternative welfare indicators," Ecological Economics, Elsevier, vol. 169(C).
    11. Aramendia, Emmanuel & Brockway, Paul E. & Pizzol, Massimo & Heun, Matthew K., 2021. "Moving from final to useful stage in energy-economy analysis: A critical assessment," Applied Energy, Elsevier, vol. 283(C).
    12. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Serrenho, André Cabrera & Warr, Benjamin & Sousa, Tânia & Ayres, Robert U. & Domingos, Tiago, 2016. "Structure and dynamics of useful work along the agriculture-industry-services transition: Portugal from 1856 to 2009," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 1-21.
    2. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.
    3. Sousa, Tânia & Brockway, Paul E. & Cullen, Jonathan M. & Henriques, Sofia Teives & Miller, Jack & Serrenho, André Cabrera & Domingos, Tiago, 2017. "The Need for Robust, Consistent Methods in Societal Exergy Accounting," Ecological Economics, Elsevier, vol. 141(C), pages 11-21.
    4. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2018. "Useful Exergy Is Key in Obtaining Plausible Aggregate Production Functions and Recognizing the Role of Energy in Economic Growth: Portugal 1960–2009," Ecological Economics, Elsevier, vol. 148(C), pages 103-120.
    5. Zeus Guevara & Oscar Córdoba & Edith X. M. García & Rafael Bouchain, 2017. "The Status and Evolution of Energy Supply and Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach †," Economies, MDPI, vol. 5(1), pages 1-17, March.
    6. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    7. Miguel Palma & Tânia Sousa & Zeus Guevara, 2016. "How Much Detail Should We Use to Compute Societal Aggregated Exergy Efficiencies?," Energies, MDPI, vol. 9(5), pages 1-13, May.
    8. Aramendia, Emmanuel & Brockway, Paul E. & Pizzol, Massimo & Heun, Matthew K., 2021. "Moving from final to useful stage in energy-economy analysis: A critical assessment," Applied Energy, Elsevier, vol. 283(C).
    9. Jadhao, Sachin B. & Pandit, Aniruddha B. & Bakshi, Bhavik R., 2017. "The evolving metabolism of a developing economy: India’s exergy flows over four decades," Applied Energy, Elsevier, vol. 206(C), pages 851-857.
    10. Kostas Bithas & Panos Kalimeris & Eleni Koilakou, 2021. "Re‐estimating the energy intensity of growth with implications for sustainable development. The myth of the decoupling effect," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 441-452, March.
    11. Warr, Benjamin & Ayres, Robert & Eisenmenger, Nina & Krausmann, Fridolin & Schandl, Heinz, 2010. "Energy use and economic development: A comparative analysis of useful work supply in Austria, Japan, the United Kingdom and the US during 100Â years of economic growth," Ecological Economics, Elsevier, vol. 69(10), pages 1904-1917, August.
    12. Claudiu Cicea & Carmen Nadia Ciocoiu & Corina Marinescu, 2021. "Exploring the Research Regarding Energy–Economic Growth Relationship," Energies, MDPI, vol. 14(9), pages 1-23, May.
    13. Farzana Sharmin & Mohammed Robayet Khan & Mohammed Robayet Khan, 2016. "A Causal Relationship between Energy Consumption, Energy Prices and Economic Growth in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 477-494.
    14. Brand-Correa, Lina I. & Steinberger, Julia K., 2017. "A Framework for Decoupling Human Need Satisfaction From Energy Use," Ecological Economics, Elsevier, vol. 141(C), pages 43-52.
    15. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Crude oil conservation policy hypothesis in OECD (organisation for economic cooperation and development) countries: A multivariate panel Granger causality test," Energy, Elsevier, vol. 43(1), pages 253-260.
    16. Victor Court, 2019. "An Estimation of Different Minimum Exergy Return Ratios Required for Society," Biophysical Economics and Resource Quality, Springer, vol. 4(3), pages 1-13, September.
    17. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    18. Marco Vittorio Ecclesia & João Santos & Paul E. Brockway & Tiago Domingos, 2022. "A Comprehensive Societal Energy Return on Investment Study of Portugal Reveals a Low but Stable Value," Energies, MDPI, vol. 15(10), pages 1-22, May.
    19. Serrenho, André Cabrera & Sousa, Tânia & Warr, Benjamin & Ayres, Robert U. & Domingos, Tiago, 2014. "Decomposition of useful work intensity: The EU (European Union)-15 countries from 1960 to 2009," Energy, Elsevier, vol. 76(C), pages 704-715.
    20. Laura Felício & Sofia T. Henriques & André Serrenho & Tiago Domingos & Tânia Sousa, 2019. "Insights from Past Trends in Exergy Efficiency and Carbon Intensity of Electricity: Portugal, 1900–2014," Energies, MDPI, vol. 12(3), pages 1-22, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:9:y:2016:i:7:p:488-:d:72680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.