The effect of ESCOs on carbon dioxide emissions
AbstractProponents of energy service companies (ESCOs) argue that these firms provide a crucial instrument for delivering improved energy efficiency in public and private sectors, thus contributing to carbon dioxide (CO2) emissions reduction around the world. Do ESCOs reduce CO2 emissions? To answer this question, we develop an estimating equation, which approximates the IPAT model, from a simple model of production. Based on the modified dynamic IPAT model, using the panel data of 129 countries over the period 1980 to 2007, we provide significant evidence to show that the ESCOs effectively reduce CO2 emissions and this effect increases over time. These findings also prove robust to the inclusion of a set of control variables, different dates of the first ESCO, and the Kyoto Protocol. Finally, we discuss energy policy implications.
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 2012-14.
Length: 31 pages
Date of creation: Aug 2012
Date of revision:
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More information through EDIRC
Energy service companies (ESCOs); Carbon dioxide (C02) emissions; Dynamic IPAT model;
Find related papers by JEL classification:
- 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-2012-09-22 (All new papers)
- NEP-ENE-2012-09-22 (Energy Economics)
- NEP-ENV-2012-09-22 (Environmental Economics)
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