Energy Prices and the Adoption of Energy-Saving Technology
AbstractThis paper investigates the link between factor prices, technology and factor demands. I estimate the effect of price-induced technology adoption on energy demand in the U.S. manufacturing sector, using plant data from the Census of Manufactures, 1963-1997. I compare the energy efficiency of entrants and incumbents to measure the effect of technology adoption on the demand for energy. A 10 percent increase in the price of energy causes technology adoption that reduces the energy demand of entrants by 1 percent. This elasticity has two implications: first, technology adoption explains a statistically significant but relatively small fraction of changes in energy demand in the 1970s and 1980s; and second, technology adoption can reduce the long run effect of energy prices on growth, but by less than previous research has found.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research in its series Working Papers with number 0612.
Date of creation: Apr 2006
Date of revision:
Contact details of provider:
Postal: 77 Massachusetts Ave. (Building E40-279), Cambridge, MA 02139-4307
Phone: (617) 253-3551
Fax: (617) 253-9845
Web page: http://tisiphone.mit.edu/RePEc
More information through EDIRC
Other versions of this item:
- Joshua Linn, 2008. "Energy Prices and the Adoption of Energy-Saving Technology," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(533), pages 1986-2012, November.
- NEP-ALL-2006-08-12 (All new papers)
- NEP-ENE-2006-08-12 (Energy Economics)
- NEP-INO-2006-08-12 (Innovation)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- David Grover, 2012. "Knowledge versus technique in SO2-saving technological change: A comparative test using quantile regression with implications for greenhouse gas compliance," Grantham Research Institute on Climate Change and the Environment Working Papers, Grantham Research Institute on Climate Change and the Environment 99, Grantham Research Institute on Climate Change and the Environment.
- Spyros Arvanitis & Ley Marius, 2010.
"Factors Determining the Adoption of Energy-saving Technologies in Swiss Firms – An Analysis based on Micro Data,"
KOF Working papers
10-257, KOF Swiss Economic Institute, ETH Zurich.
- Spyros Arvanitis & Marius Ley, 2013. "Factors Determining the Adoption of Energy-Saving Technologies in Swiss Firms: An Analysis Based on Micro Data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(3), pages 389-417, March.
- Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
- Klier, Thomas & Linn, Joshua, 2013. "Technological Change, Vehicle Characteristics, and the Opportunity Costs of Fuel Economy Standards," Discussion Papers, Resources For the Future dp-13-40, Resources For the Future.
- Stefania Lovo & Michael Gasiorek & Richard Tol, 2014. "Investment in second-hand capital goods and energy intensity," Grantham Research Institute on Climate Change and the Environment Working Papers, Grantham Research Institute on Climate Change and the Environment 163, Grantham Research Institute on Climate Change and the Environment.
- Stilianos Alexiadis & Konstantinos Eleftheriou & Peter Nijkamp, 2011. "Labor Market Dynamics and Technology Adoption: Theory and Empirical Evidence," Tinbergen Institute Discussion Papers 11-163/3, Tinbergen Institute.
- Marius Ley, 2010. "Insights into the Determinants of Innovation of Energy Efficiency," KOF Working papers 10-266, KOF Swiss Economic Institute, ETH Zurich.
- JoÃ«lle Noailly, 2010.
"Improving the energy efficiency of building: The impact of environmental policy on technological innovation,"
CPB Discussion Paper
137, CPB Netherlands Bureau for Economic Policy Analysis.
- Noailly, Joëlle, 2012. "Improving the energy efficiency of buildings: The impact of environmental policy on technological innovation," Energy Economics, Elsevier, vol. 34(3), pages 795-806.
- Joëlle Noailly, 2010. "Improving the Energy-Efficiency of Buildings: The Impact of Environmental Policy on Technological Innovation," Working Papers 2010.106, Fondazione Eni Enrico Mattei.
- Cantono, Simona, 2012. "Unveiling diffusion dynamics: an autocatalytic percolation model of environmental innovation diffusion and the optimal dynamic path of adoption subsidies," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201222, University of Turin.
- Luisanna Onnis & Patrizio Tirelli, 2010. "Challenging the popular wisdom. New estimates of the unobserved economy," Working Papers, University of Milano-Bicocca, Department of Economics 184, University of Milano-Bicocca, Department of Economics, revised Apr 2010.
- Sue Wing, Ian, 2008. "Explaining the declining energy intensity of the U.S. economy," Resource and Energy Economics, Elsevier, vol. 30(1), pages 21-49, January.
- Alexiadis, Stilianos & Eleftheriou, Konstantinos & Nijkamp, Peter, 2013. "Technology adoption within a search model: Evidence from OECD countries," Economic Modelling, Elsevier, vol. 33(C), pages 137-148.
- Steinbuks, Jevgenijs & Neuhoff, Karsten, 2014. "Assessing energy price induced improvements in efficiency of capital in OECD manufacturing industries," Policy Research Working Paper Series 6929, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharmila Ganguly) The email address of this maintainer does not seem to be valid anymore. Please ask Sharmila Ganguly to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.