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International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends

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  • Peter Mulder

    (International Institute for Applied Systems Analysis, Laxenburg, Austria)

  • Henri L.F. de Groot

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

This paper addresses the interplay between economic growth, energy use, change in sectoral composition and technological change, by exploring trends in energy- and labour productivity development for 14 OECD countries and four sectors over the period 1970-1997. A cross-country decomposition analysis reveals that in some countries structural changes contributed considerably to macroeconomic energy-productivity growth while in other countries they partly offset energy-efficiency improvements. In contrast, structural changes only play a minor role in explaining macroeconomic labour-productivity developments. We also find labour productivity growth to be higher on average than energy productivity growth. Over time, this bias towards labour productivity growth is increasing in Transport, Agriculture and Manufacturing, while it is decreasing in Services.

Suggested Citation

  • Peter Mulder & Henri L.F. de Groot, 2004. "International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends," Tinbergen Institute Discussion Papers 04-007/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040007
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    Cited by:

    1. Lukas Hardt & John Barrett & Peter G. Taylor & Timothy J. Foxon, 2020. "Structural Change for a Post-Growth Economy: Investigating the Relationship between Embodied Energy Intensity and Labour Productivity," Sustainability, MDPI, vol. 12(3), pages 1-25, January.
    2. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January.
    3. Vu, Khuong & Hartley, Kris, 2022. "Sources of transport sector labor productivity performance in industrialized countries: Insights from a decomposition analysis," Transport Policy, Elsevier, vol. 129(C), pages 204-218.
    4. Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
    5. Mulder, Peter & de Groot, Henri L.F., 2013. "Dutch sectoral energy intensity developments in international perspective, 1987–2005," Energy Policy, Elsevier, vol. 52(C), pages 501-512.
    6. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January.
    7. Peter Mulder & Henri L.F. de Groot, 2011. "Energy-Productivity Performance Across 14 OECD Countries: The Role of Energy-Extensive Sectors," Chapters, in: Raymond J.G.M. Florax & Henri L.F. de Groot & Peter Mulder (ed.), Improving Energy Efficiency through Technology, chapter 3, Edward Elgar Publishing.
    8. Giulio Guarini & Giuseppe Garofalo & Alessandro Federici, 2014. "A Virtuous Cumulative Growth Circle among Innovation, Inclusion and Sustainability? A Structuralist-Keynesian Analysis with an Application on Europe," GREDEG Working Papers 2014-39, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    More about this item

    Keywords

    energy productivity; labour productivity; convergence; sectoral analysis; decomposition analysis;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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