Modeling International Trends in Energy Efficiency and Carbon Emissions
AbstractThis study uses a stochastic production frontier to model energy efficiency trends, in 85 countries over a 37 year period. No structure is imposed on technological change over time, although differences in technology level across the countries are modelled as a stochastic function of explanatory variables. These variables are selected by a literature survey and a theoretical model of energy-efficient technology choice. An improvement in a country’s energy efficiency is measured as a reduction in energy intensity, while holding constant that economy’s mix of inputs and outputs. All other things remaining constant, the country using the least energy per unit output is on the global best-practice frontier. The model is used to derive decompositions of energy intensity and carbon emissions. It also examines whether there is a convergence across countries. The study shows that energy efficiency rises with increasing general total factor productivity. Energy efficiency is also higher in countries with undervalued currencies. Higher fossil fuel reserves are associated with lower energy efficiency. Energy efficiency converges over time across countries. Technological change was the most important factor counteracting the effect of economic growth in increasing global energy- use increase and carbon emissions.
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Bibliographic InfoPaper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 94950.
Date of creation: Mar 2010
Date of revision:
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More information through EDIRC
Energy; efficiency; carbon; emissions; technological change; between estimator; Environmental Economics and Policy; Resource /Energy Economics and Policy; O13; O33; O47; Q43; Q54; Q55; Q56;
Other versions of this item:
- David I.Stern, 2010. "Modeling International Trends in Energy Efficiency and Carbon Emissions," Environmental Economics Research Hub Research Reports 1054, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-13 (All new papers)
- NEP-EFF-2010-11-13 (Efficiency & Productivity)
- NEP-ENE-2010-11-13 (Energy Economics)
- NEP-ENV-2010-11-13 (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.:
- David Popp & Richard G. Newell & Adam B. Jaffe, 2009. "Energy, the Environment, and Technological Change," NBER Working Papers 14832, National Bureau of Economic Research, Inc.
- Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
- van Zon, Adriaan & Yetkiner, I. Hakan, 2003. "An endogenous growth model with embodied energy-saving technical change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 81-103, February.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Hub Project Almost Wrapped Up
by David Stern in Stochastic Trend on 2012-03-14 10:17:00
- 3. Energy Intensity is not Correlated with GDP per Capita
by David Stern in Stochastic Trend on 2011-11-04 07:09:00
- Australia's 2010 Emissions Projection Released
by David Stern in Stochastic Trend on 2011-02-08 22:54:00
- A Clarification, 14 Years On...
by David Stern in Stochastic Trend on 2010-11-26 23:49:00
- Submitted my Main Hub Paper
by David Stern in Stochastic Trend on 2010-08-18 13:40:00
- Shifts in the Composition of Output
by David Stern in Stochastic Trend on 2010-04-22 01:23:00
- Innovation and Energy Efficiency
by David Stern in Stochastic Trend on 2010-04-21 05:24:00
- Energy Mix and Energy Intensity
by David Stern in Stochastic Trend on 2010-04-17 04:49:00
- Final Hub Report
by David Stern in Stochastic Trend on 2010-03-26 05:16:00
- David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
- Stern, David I. & Jotzo, Frank, 2010.
"How Ambitious are China and India’s Emissions Intensity Targets?,"
94947, Australian National University, Environmental Economics Research Hub.
- Stern, David I. & Jotzo, Frank, 2010. "How ambitious are China and India's emissions intensity targets?," Energy Policy, Elsevier, vol. 38(11), pages 6776-6783, November.
- David I. Stern & Frank Jotzo, 2009. "How Ambitious are China and India's Emissions Intensity Targets?," Environmental Economics Research Hub Research Reports 1051, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
- Lin, Boqiang & Yang, Lisha, 2013. "The potential estimation and factor analysis of China′s energy conservation on thermal power industry," Energy Policy, Elsevier, vol. 62(C), pages 354-362.
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