Modeling International Trends in Energy Efficiency and Carbon Emissions
AbstractThis study uses a stochastic production frontier to model trends in energy efficiency over time in a panel of 85 countries. No a priori structure is imposed on technological change over time though differences in the level of technology across countries are modeled as a stochastic function of explanatory variables. These variables are selected on the basis of a literature survey and theoretical model of the choice of energy efficiency technology. An improvement in a country’s energy efficiency is measured as a reduction in energy intensity while holding constant the input and output structure of that economy. The country using the least energy per unit output, ceteris paribus, is on the global best practice frontier. The model is used to derive decompositions of energy intensity and carbon emissions and to examine the whether there is a convergence across countries. I find that energy efficiency rises with increasing general total factor productivity but is also higher in countries with more undervalued exchange rates in PPP terms. Higher fossil fuel reserves are associated with lower energy efficiency. Energy efficiency converges over time across countries and technological change was the most important factor mitigating the global increase in energy use and carbon emissions due to economic growth.
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Bibliographic InfoPaper provided by Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University in its series Environmental Economics Research Hub Research Reports with number 1054.
Date of creation: Mar 2010
Date of revision:
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Energy; efficiency; carbon; emissions; technological change; between estimator;
Other versions of this item:
- Stern, David I., 2010. "Modeling International Trends in Energy Efficiency and Carbon Emissions," Research Reports 94950, Australian National University, Environmental Economics Research Hub.
- 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
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-ENE-2010-04-17 (Energy Economics)
- NEP-ENV-2010-04-17 (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.
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
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- 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
- Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
- 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.
- 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. & Jotzo, Frank, 2010. "How ambitious are China and India's emissions intensity targets?," Energy Policy, Elsevier, vol. 38(11), pages 6776-6783, November.
- Stern, David I. & Jotzo, Frank, 2010. "How Ambitious are China and India’s Emissions Intensity Targets?," Research Reports 94947, Australian National University, Environmental Economics Research Hub.
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