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Evidence Of An “Energy-Management Gap” In U.S. Manufacturing: Spillovers From Firm Management Practices To Energy Efficiency

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  • Gale Boyd
  • Mark Curtis
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    Abstract

    In this paper we merge a well-cited survey of firm management practices into confidential U.S. Census microdata to examine whether generic, i.e. non-energy specific, firm management practices, ”spillover” to enhance energy efficiency in the United States. We find the relationship in U.S. plants to be more nuanced than past research on UK plants has suggested. Most management techniques have beneficial spillovers to energy efficiency, but an emphasis on generic targets, conditional on other management practices, results in spillovers that increase energy intensity. Our specification controls for industry specific effects at a detailed 6-digit NAICS level and shows that this result is stronger for firms in energy intensive industries. We interpret the empirical result that generic management practices do not necessarily spillover to improved energy performance as evidence of an “energy management gap.”

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    File URL: ftp://ftp2.census.gov/ces/wp/2013/CES-WP-13-25.pdf
    File Function: First version, 2013
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    Bibliographic Info

    Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-25.

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    Length: 36 pages
    Date of creation: Apr 2013
    Date of revision:
    Handle: RePEc:cen:wpaper:13-25

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    1. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, Elsevier, vol. 22(10), pages 804-810, October.
    2. Adam B. Jaffe & Robert N. Stavins, 1994. "Energy-Efficiency Investments and Public Policy," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 2), pages 43-66.
    3. Nick Bloom & John Van Reenen, 2006. "Measuring and explaining management practices across firms and countries," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 733, London School of Economics and Political Science, LSE Library.
    4. DeCanio, Stephen J., 1993. "Barriers within firms to energy-efficient investments," Energy Policy, Elsevier, Elsevier, vol. 21(9), pages 906-914, September.
    5. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-65, June.
    6. B. Howarth, Richard & Haddad, Brent M. & Paton, Bruce, 2000. "The economics of energy efficiency: insights from voluntary participation programs," Energy Policy, Elsevier, Elsevier, vol. 28(6-7), pages 477-486, June.
    7. Stephen J. Decanio & William E. Watkins, 1998. "Investment In Energy Efficiency: Do The Characteristics Of Firms Matter?," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 95-107, February.
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