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International comparison of sectoral energy- and labour-productivity performance; stylised facts and decomposition of trends

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  • 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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Bibliographic Info

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

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Date of creation: Nov 2003
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Handle: RePEc:cpb:discus:22

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  1. Peter Mulder & Henri de Groot, 2003. "Sectoral energy- and labour-productivity convergence," CPB Discussion Paper 23, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Benton F. Massell, 1961. "A Disaggregated View of Technical Change," Journal of Political Economy, University of Chicago Press, vol. 69, pages 547.
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  8. 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.
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  14. Ang, B. W., 1995. "Multilevel decomposition of industrial energy consumption," Energy Economics, Elsevier, vol. 17(1), pages 39-51, January.
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  18. John W. Kendrick, 1961. "Productivity Trends in the United States," NBER Books, National Bureau of Economic Research, Inc, number kend61-1.
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Cited by:
  1. Henri De Groot & Peter Mulder, 2004. "Sectoral Energy- and Labour-Productivity Convergence," ERSA conference papers ersa04p337, European Regional Science Association.
  2. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, vol. 27(3), pages 429-453, May.
  3. Henri de Groot & Peter Mulder, 2011. "Dutch Sectoral Energy Intensity Developments in International Perspective, 1987–2005," CPB Discussion Paper 190, CPB Netherlands Bureau for Economic Policy Analysis.

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