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International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends

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Author Info
Peter Mulder
Henri de Groot ()

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Abstract

This paper simultaneously explores trends in energy- and labour productivity for 14 OECD countries and 13 sectors over the period 1970-1997. A principal aim of this paper is to trace back macroeconomic productivity developments to developments at the level of individual sectors, in order to correct trends in technology-driven productivity improvements for the impact of structural effects.

First, we document trends in macroeconomic energy- and labour productivity performance, examining the role of the Manufacturing, Services, Transport and Agricultural sector.

Second, we take a closer look at the role of 10 Manufacturing sectors in driving aggregate Manufacturing energy- and labour-productivity performance. A cross-country decomposition analysis reveals that in some countries structural changes contributed considerably to aggregate energy-productivity growth while in other countries they partly offset energy-efficiency improvements. In contrast, structural changes only play a minor role in explaining aggregate labour-productivity developments. We identify for each country the percentage contribution of each sector to aggregate structural and efficiency changes.

Furthermore, we find labour productivity growth to be higher on average than energy productivity growth. Over time, this bias towards labour productivity growth is increasing in the Transport, Agriculture and aggregate Manufacturing sectors, while it is decreasing in Services and most Manufacturing sectors.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Papers with number 22.

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Handle: RePEc:cpb:discus:22

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Related research
Keywords: energy; energy productivity; labour; labour productivity; convergence; sectoral analysis;

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Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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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.:
  1. Binswanger, Hans P, 1974. "A Microeconomic Approach to Induced Innovation," Economic Journal, Royal Economic Society, vol. 84(336), pages 940-58, December. [Downloadable!] (restricted)
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    Other versions:
  4. Jan Fagerberg, 2000. "Technological Progress, Structural Change and Productivity Growth: A Comparative Study," Working Papers 5, Centre for Technology, Innovation and Culture, University of Oslo.
    Other versions:
  5. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January. [Downloadable!] (restricted)
    Other versions:
  6. Dirk Pilat, 1996. "Labour Productivity Levels in OECD Countries: Estimates for Manufacturing and Selected Service Sectors," OECD Economics Department Working Papers 169, OECD, Economics Department. [Downloadable!]
  7. Greening, Lorna A. & Davis, William B. & Schipper, Lee & Khrushch, Marta, 1997. "Comparison of six decomposition methods: application to aggregate energy intensity for manufacturing in 10 OECD countries," Energy Economics, Elsevier, vol. 19(3), pages 375-390, July. [Downloadable!] (restricted)
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  11. Smulders, Sjak & de Nooij, Michiel, 2003. "The impact of energy conservation on technology and economic growth," Resource and Energy Economics, Elsevier, vol. 25(1), pages 59-79, February. [Downloadable!] (restricted)
  12. Acemoglu, Daron, 2002. "Directed Technical Change," Review of Economic Studies, Blackwell Publishing, vol. 69(4), pages 781-809, October.
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  13. Jorgenson, Dale W, 1984. "The Role of Energy in Productivity Growth," American Economic Review, American Economic Association, vol. 74(2), pages 26-30, May. [Downloadable!] (restricted)
  14. Unander, Fridtjof & Karbuz, Sohbet & Schipper, Lee & Khrushch, Marta & Ting, Michael, 1999. "Manufacturing energy use in OECD countries: decomposition of long-term trends," Energy Policy, Elsevier, vol. 27(13), pages 769-778, November. [Downloadable!] (restricted)
  15. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis And Energy-Saving Technological Change," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 941-975, August. [Downloadable!] (restricted)
    Other versions:
  16. Binswanger, Hans P., 1974. "A Microeconomic Approach To Induced Innovation," Staff Papers 14152, University of Minnesota, Department of Applied Economics. [Downloadable!]
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  1. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January. [Downloadable!] (restricted)
    Other versions:
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