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Energy quality

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  • Stern, David I.

Abstract

This paper develops economic definitions of energy quality for individual fuels and energy aggregates. There are both use- and exchange-value concepts as well as marginal and total measures of energy quality. A factor augmentation or quality coefficients approach corresponds to the use-value definition while indicators based on distance functions and relative prices are exchange-value based definitions. These indicators are identical when the elasticity of substitution between fuels is infinity but diverge or cannot be computed for other interfuel elasticities of substitution. Under zero substitutability only the quality coefficients approach is defined. I also find that the ratio of an energy volume index to aggregate joules cannot be considered a complete indicator of aggregate energy quality as it does not account for quality changes in the component fuels.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16857.

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Date of creation: 19 Aug 2009
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Handle: RePEc:pra:mprapa:16857

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Keywords: Energy; Quality; Productivity;

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References

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  1. Tallman, Ellis W. & Wang, Ping, 1994. "Human capital and endogenous growth evidence from Taiwan," Journal of Monetary Economics, Elsevier, vol. 34(1), pages 101-124, August.
  2. Stern, David I., 1999. "Use value, exchange value, and resource scarcity," Energy Policy, Elsevier, vol. 27(8), pages 469-476, August.
  3. Giannias, Dimitrios A, 1998. "Labour Quality and Wage Differentials," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 188-97, May.
  4. Stern, David I., 1993. "Energy and economic growth in the USA : A multivariate approach," Energy Economics, Elsevier, vol. 15(2), pages 137-150, April.
  5. Cleveland, Cutler J. & Kaufmann, Robert K. & Stern, David I., 2000. "Aggregation and the role of energy in the economy," Ecological Economics, Elsevier, vol. 32(2), pages 301-317, February.
  6. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  7. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
  8. Jorgenson, Dale W. & Ho, Mun S. & Stiroh, Kevin J., 2003. "Lessons from the US growth resurgence," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 453-470, July.
  9. Daron Acemoglu, 2000. "Labor- and Capital- Augmenting Technical Change," NBER Working Papers 7544, National Bureau of Economic Research, Inc.
  10. Eugenia Kazamaki Ottersten & Thomas Lindh Mellander, 1999. "Evaluating firm training, effects on performance and labour demand," Applied Economics Letters, Taylor & Francis Journals, vol. 6(7), pages 431-437.
  11. David I. Stern, 2009. "Interfuel Substitution: A Meta-Analysis," Departmental Working Papers 2009-06, The Australian National University, Arndt-Corden Department of Economics.
  12. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
  13. John M. Abowd & Francis Kramarz & Antoine Moreau, 1995. "Product Quality and Worker Quality," NBER Working Papers 5077, National Bureau of Economic Research, Inc.
  14. Enflo, Kerstin & Kander, Astrid & Schön, Lennart, 2009. "Electrification and energy productivity," Ecological Economics, Elsevier, vol. 68(11), pages 2808-2817, September.
  15. Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Role of Energy in the Industrial Revolution and Modern Economic Growth
    by David Stern in Stochastic Trend on 2011-04-23 06:02:00
  2. Energy Mix and Energy Intensity
    by David Stern in Stochastic Trend on 2010-04-17 04:49:00
  3. Energy Quality
    by David Stern in Stochastic Trend on 2010-01-31 21:32:00
  4. Energy Quality
    by David Stern in Stochastic Trend on 2009-08-19 12:43:00
  5. 3. Energy Intensity is not Correlated with GDP per Capita
    by David Stern in Stochastic Trend on 2011-11-04 07:09:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. 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.
  2. Liao, Hua & Wei, Yi-Ming, 2012. "Will the aggregation approach affect energy efficiency performance assessment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4537-4542.
  3. Lee, Lisa Yu-Ting, 2013. "Household energy mix in Uganda," Energy Economics, Elsevier, vol. 39(C), pages 252-261.
  4. Jack Gregory & David I. Stern, 2012. "Fuel Choices in Rural Maharashtra," CCEP Working Papers 1207, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  5. David I. Stern & Kerstin Enflo, 2013. "Causality Between Energy and Output in the Long-Run," CAMA Working Papers 2013-01, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  6. Elena Ketteni & Theofanis Mamuneas & Panos Pashardes, 2013. "ICT and Energy Use: Patterns of Substitutability and Complementarity in Production," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 63-86, June.
  7. 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.
  8. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.

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