Energy use reduction and input productivity growth in Australian industries
AbstractA report by the Prime Minister’s Task Group on Energy Efficiency (July 2010) emphasised the need for improved energy efficiency as a response to climate change to ensure a reduction in greenhouse gas emissions from energy consumption in Australia. However, empirical evidence on energy efficiency and its effect on energy use in Australia is scarce. Given this, estimates of the magnitude of the autonomous energy efficiency improvement parameter and the bias in technological change in Australia’s agricultural and industrial sectors have been made, using statistical and econometric techniques. The strong interaction prevailing between capital use and energy productivity in many industries indicates that energy use efficiency may be augmented by optimising capital use. This can be achieved by removing impediments to the use of new capital—that is, by making capital markets more flexible. This should ease the burden on energy efficiency policies or energy conservation measures by providing alternative ways to increase energy efficiency that do not focus on energy use as such. Results of the estimates for overall productivity, input use productivity, the influence of capital on energy productivity, and energy-saving and energy-using bias revealed widely different energy productivity growth rates in different industries studied. Such results suggest a need to revise the 0.5 per cent a year autonomous energy efficiency improvement parameter assumed in most economic projection models used in Australia.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100715.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
energy efficiency; energy demand; energy policy; climate change.; Resource /Energy Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-05 (All new papers)
- NEP-EFF-2011-03-05 (Efficiency & Productivity)
- NEP-ENE-2011-03-05 (Energy Economics)
- NEP-ENV-2011-03-05 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chang, Kuo-Ping, 1994. "Capital-energy substitution and the multi-level CES production function," Energy Economics, Elsevier, vol. 16(1), pages 22-26, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.