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Population Density and Efficiency in Energy Consumption: An empirical analysis of service establishments

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  • MORIKAWA Masayuki

Abstract

The achievement of both sustainable economic growth and reductions in CO2 emissions has been an important policy agenda in recent years. This study, using novel establishment-level microdata from the Energy Consumption Statistics, empirically analyzes the effect of urban density on energy intensity in the service sector. According to the analysis, the efficiency of energy consumption in service establishments is higher for densely populated cities. Quantitatively, after controlling for differences among industries, energy efficiency increases by approximately 12% when the density in a municipality population doubles. This result suggests that, given a structural transformation toward the service economy, deregulation of excessive restrictions hindering urban agglomeration, and investment in infrastructure in city centers would contribute to environmentally friendly economic growth.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11058.

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Length: 18 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:eti:dpaper:11058

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  1. Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2008. "Modern Management: Good for the Environment or just Hot Air?," NBER Working Papers 14394, National Bureau of Economic Research, Inc.
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  6. MORIKAWA Masayuki, 2008. "Economies of Density and Productivity in Service Industries: An Analysis of Personal-Service Industries Based on Establishment-Level Data," Discussion papers 08023, Research Institute of Economy, Trade and Industry (RIETI).
  7. Glaeser, Edward L. & Kahn, Matthew E., 2010. "The greenness of cities: Carbon dioxide emissions and urban development," Journal of Urban Economics, Elsevier, vol. 67(3), pages 404-418, May.
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Cited by:
  1. Bagayev, Igor & Najman, Boris, 2013. "Less quality more costs: Does local power sector reliability matter for electricity intensity?," MPRA Paper 46943, University Library of Munich, Germany.
  2. Bagayev, Igor & Najman, Boris, 2014. "Money to fill the gap? Local financial development and energy intensity in Europe and Central Asia," MPRA Paper 55193, University Library of Munich, Germany.

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