IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v45y2013i34p4796-4804.html
   My bibliography  Save this article

The effect of ESCO s on carbon dioxide emissions

Author

Listed:
  • WenShwo Fang
  • Stephen M. Miller

Abstract

Proponents of energy service companies ( ESCO s) argue that these firms provide a crucial instrument for delivering improved energy efficiency in public and private sectors, thus contributing to carbon dioxide (CO 2 ) emission reduction around the world. Do ESCO s reduce CO 2 emissions? To answer this question, we develop an estimating equation, which approximates the IPAT model, from a simple model of production. We estimate a dynamic panel of 129 countries over the period 1980--2007 to show that the ESCO s effectively reduce CO 2 emissions and that this effect increases over time. These findings also prove robust to the inclusion of a set of control variables, different dates of the first ESCO and the Kyoto Protocol. Finally, we discuss energy policy implications.

Suggested Citation

  • WenShwo Fang & Stephen M. Miller, 2013. "The effect of ESCO s on carbon dioxide emissions," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4796-4804, December.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4796-4804
    DOI: 10.1080/00036846.2013.804172
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2013.804172
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2013.804172?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2007. "The impact of population on CO 2 emissions: evidence from European countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 497-512, December.
    2. Martínez-Zarzoso, Inmaculada & Maruotti, Antonello, 2011. "The impact of urbanization on CO2 emissions: Evidence from developing countries," Ecological Economics, Elsevier, vol. 70(7), pages 1344-1353, May.
    3. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    4. Okay, Nesrin & Akman, Ugur, 2010. "Analysis of ESCO activities using country indicators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2760-2771, December.
    5. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    6. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    7. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    8. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    9. Chien-Chiang Lee & Yi-Bin Chiu & Chia-Hung Sun, 2009. "Does One Size Fit All? A Reexamination of the Environmental Kuznets Curve Using the Dynamic Panel Data Approach," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 751-778.
    10. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    11. Vine, Edward L. & Murakoshi, Chiharu & Nakagami, Hidetoshi, 1998. "International ESCO business opportunities and challenges: a Japanese case study," Energy, Elsevier, vol. 23(6), pages 439-447.
    12. Richard T. Carson, 2010. "The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 3-23, Winter.
    13. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    14. Caviglia-Harris, Jill L. & Chambers, Dustin & Kahn, James R., 2009. "Taking the "U" out of Kuznets: A comprehensive analysis of the EKC and environmental degradation," Ecological Economics, Elsevier, vol. 68(4), pages 1149-1159, February.
    15. Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2009. "Driving Factors of Carbon Dioxide Emissions and the Impact from Kyoto Protocol," Ibero America Institute for Econ. Research (IAI) Discussion Papers 190, Ibero-America Institute for Economic Research.
    16. Matthew A. Cole & Eric Neumayer, 2003. "Examining the Impact of Demographic Factors On Air Pollution," Labor and Demography 0312005, University Library of Munich, Germany, revised 13 May 2004.
    17. Robert P. Taylor & Chandrasekar Govindarajalu & Jeremy Levin & Anke S. Meyer & William A. Ward, 2008. "Financing Energy Efficiency : Lessons from Brazil, China, India, and Beyond," World Bank Publications - Books, The World Bank Group, number 6349, December.
    18. Iwata, Hiroki & Okada, Keisuke, 2010. "Greenhouse gas emissions and the role of the Kyoto Protocol," MPRA Paper 22299, University Library of Munich, Germany.
    19. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
    20. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    21. Popp, David, 2004. "ENTICE: endogenous technological change in the DICE model of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 742-768, July.
    22. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    23. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
    24. Sarkar, Ashok & Singh, Jas, 2010. "Financing energy efficiency in developing countries--lessons learned and remaining challenges," Energy Policy, Elsevier, vol. 38(10), pages 5560-5571, October.
    25. Okay, Esin & Okay, Nesrin & Konukman, Alp Er S. & Akman, Ugur, 2008. "Views on Turkey's impending ESCO market: Is it promising?," Energy Policy, Elsevier, vol. 36(6), pages 1821-1825, June.
    26. Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
    27. Martin Gassebner & Michael J. Lamla & Jan-Egbert Sturm, 2011. "Determinants of pollution: what do we really know?," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 568-595, July.
    28. Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2010. "Economic models for the environmental Kuznets curve: A survey," Journal of Economic Dynamics and Control, Elsevier, vol. 34(7), pages 1187-1201, July.
    29. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    30. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    31. Goldman, Charles A. & Hopper, Nicole C. & Osborn, Julie G., 2005. "Review of US ESCO industry market trends: an empirical analysis of project data," Energy Policy, Elsevier, vol. 33(3), pages 387-405, February.
    32. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    33. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
    34. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    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. Akman, Ugur & Okay, Esin & Okay, Nesrin, 2013. "Current snapshot of the Turkish ESCO market," Energy Policy, Elsevier, vol. 60(C), pages 106-115.
    2. Huang, Junbing & Li, Xinghao & Wang, Yajun & Lei, Hongyan, 2021. "The effect of energy patents on China's carbon emissions: Evidence from the STIRPAT model," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Olaronke T. ONANUGA, 2017. "Elasticity of CO2 emissions with Respect to Income, Population, and Energy Use: Time Series Evidence from African Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 651-670, December.
    4. Hasanov, Fakhri J. & Bulut, Cihan & Suleymanov, Elchin, 2016. "Do population age groups matter in the energy use of the oil-exporting countries?," Economic Modelling, Elsevier, vol. 54(C), pages 82-99.

    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. Fang, Wen Shwo & Miller, Stephen M. & Yeh, Chih-Chuan, 2012. "The effect of ESCOs on energy use," Energy Policy, Elsevier, vol. 51(C), pages 558-568.
    2. Miguel Rodríguez & Yolanda Pena-Boquete, 2013. "Mishandling carbon intensities," Working Papers 1302, Universidade de Vigo, Departamento de Economía Aplicada.
    3. Roxana Pincheira & Felipe Zuniga & Pablo Neudorfer, 2021. "Carbon Kuznets curve: a dynamic empirical approach for a panel data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5523-5541, December.
    4. Roxana Pincheira & Felipe Zuniga, 2021. "Environmental Kuznets curve bibliographic map: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1931-1956, April.
    5. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    6. Stern, David I., 2014. "The Environmental Kuznets Curve: A Primer," Working Papers 249424, Australian National University, Centre for Climate Economics & Policy.
    7. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    8. Jayasooriya, Sujith, 2020. "Nexus of Demographic Change, Structural Transformation and Economic Growth in South Asia," MPRA Paper 100831, University Library of Munich, Germany.
    9. Martínez-Zarzoso, Inmaculada & Maruotti, Antonello, 2011. "The impact of urbanization on CO2 emissions: Evidence from developing countries," Ecological Economics, Elsevier, vol. 70(7), pages 1344-1353, May.
    10. Brännlund Runar & Karimu Amin & Söderholm Patrik, 2017. "Convergence in carbon dioxide emissions and the role of growth and institutions: a parametric and non-parametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 359-390, April.
    11. Jean-Thomas Bernard & Michael Gavin & Lynda Khalaf & Marcel Voia, 2015. "Environmental Kuznets Curve: Tipping Points, Uncertainty and Weak Identification," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(2), pages 285-315, February.
    12. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    13. Wang, Yuan & Han, Rong & Kubota, Jumpei, 2016. "Is there an Environmental Kuznets Curve for SO2 emissions? A semi-parametric panel data analysis for China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1182-1188.
    14. Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2009. "Driving Factors of Carbon Dioxide Emissions and the Impact from Kyoto Protocol," Ibero America Institute for Econ. Research (IAI) Discussion Papers 190, Ibero-America Institute for Economic Research.
    15. Liddle, Brantley, 2013. "Population, Affluence, and Environmental Impact Across Development: Evidence from Panel Cointegration Modeling," MPRA Paper 52088, University Library of Munich, Germany.
    16. Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    17. Liobikienė, Genovaitė & Butkus, Mindaugas, 2017. "Environmental Kuznets Curve of greenhouse gas emissions including technological progress and substitution effects," Energy, Elsevier, vol. 135(C), pages 237-248.
    18. Esteve, Vicente & Tamarit, Cecilio, 2012. "Threshold cointegration and nonlinear adjustment between CO2 and income: The Environmental Kuznets Curve in Spain, 1857–2007," Energy Economics, Elsevier, vol. 34(6), pages 2148-2156.
    19. Wang, Sophie Xuefei & Fu, Yu Benjamin & Zhang, Zhe George, 2015. "Population growth and the environmental Kuznets curve," China Economic Review, Elsevier, vol. 36(C), pages 146-165.
    20. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.

    More about this item

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    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:taf:applec:v:45:y:2013:i:34:p:4796-4804. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.