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.
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 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:
Contact details of provider:
Postal: University of Connecticut 341 Mansfield Road, Unit 1063 Storrs, CT 06269-1063
Phone: (860) 486-4889
Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/
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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
- Pedro Linares & Xavier Labandeira, 2010.
"Energy Efficiency: Economics And Policy,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 24(3), pages 573-592, 07.
- Inmaculada Martínez-Zarzoso, 2008.
"The Impact of Urbanization on CO2 Emissions: Evidence from Developing Countries,"
CESifo Working Paper Series
2377, CESifo Group Munich.
- Martínez-Zarzoso, Inmaculada & Maruotti, Antonello, 2011. "The impact of urbanization on CO2 emissions: Evidence from developing countries," Ecological Economics, Elsevier, vol. 70(7), pages 1344-1353, May.
- Inmaculada Martínez-Zarzoso, 2008. "The Impact of Urbanization on CO2 Emissions: Evidence from Developing Countries," Working Papers 2008.50, Fondazione Eni Enrico Mattei.
- David I. Stern, 2003.
"The Rise and Fall of the Environmental Kuznets Curve,"
Rensselaer Working Papers in Economics
0302, Rensselaer Polytechnic Institute, Department of Economics.
- Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
- David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
- Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Goldman, Charles A. & Hopper, Nicole C. & Osborn, Julie G., 2005. "Review of US ESCO industry market trends: an empirical analysis of project data," Energy Policy, Elsevier, vol. 33(3), pages 387-405, February.
- Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2009.
"Driving Factors of Carbon Dioxide Emissions and the Impact from Kyoto Protocol,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
190, Ibero-America Institute for Economic Research.
- Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2009. "Driving Factors of Carbon Dioxide Emissions and the Impact from Kyoto Protocol," CESifo Working Paper Series 2758, CESifo Group Munich.
- Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2006. "The Impact of Population on CO2 Emissions: Evidence From European Countries," Working Papers 2006.98, Fondazione Eni Enrico Mattei.
- York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
- Gene M. Grossman & Alan B. Krueger, 1994.
"Economic Growth and the Environment,"
NBER Working Papers
4634, National Bureau of Economic Research, Inc.
- Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
- Matthew A. Cole & Eric Neumayer, 2003. "Examining the Impact of Demographic Factors On Air Pollution," Labor and Demography 0312005, EconWPA, revised 13 May 2004.
- Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 401-416, November.
- Martin Gassebner & Michael J. Lamla & Jan-Egbert Sturm, 2011. "Determinants of pollution: what do we really know?," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 568-595, July.
- Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
- Caviglia-Harris, Jill L. & Chambers, Dustin & Kahn, James R., 2009. "Taking the "U" out of Kuznets: A comprehensive analysis of the EKC and environmental degradation," Ecological Economics, Elsevier, vol. 68(4), pages 1149-1159, February.
- Chien-Chiang Lee & Yi-Bin Chiu & Chia-Hung Sun, 2009. "Does One Size Fit All? A Reexamination of the Environmental Kuznets Curve Using the Dynamic Panel Data Approach," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 751-778, December.
- Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
- Robert P. Taylor & Chandrasekar Govindarajalu & Jeremy Levin & Anke S. Meyer & William A. Ward, 2008. "Financing Energy Efficiency : Lessons from Brazil, China, India, and Beyond," World Bank Publications, The World Bank, number 6349, March.
- Okay, Nesrin & Akman, Ugur, 2010.
"Analysis of ESCO activities using country indicators,"
Renewable and Sustainable Energy Reviews,
Elsevier, vol. 14(9), pages 2760-2771, December.
- Okay, Nesrin & Akman, Ugur, 2009. "Analysis of ESCO Activities Using Country Indicators," MPRA Paper 17012, University Library of Munich, Germany.
- Popp, David, 2004. "ENTICE: endogenous technological change in the DICE model of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 742-768, July.
- Richard T. Carson, 2010. "The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 3-23, Winter.
- Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
- Iwata, Hiroki & Okada, Keisuke, 2010. "Greenhouse gas emissions and the role of the Kyoto Protocol," MPRA Paper 22299, University Library of Munich, Germany.
- Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2010. "Economic models for the environmental Kuznets curve: A survey," Journal of Economic Dynamics and Control, Elsevier, vol. 34(7), pages 1187-1201, July.
- Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
- Okay, Esin & Okay, Nesrin & Konukman, Alp Er S. & Akman, Ugur, 2008. "Views on Turkey's impending ESCO market: Is it promising?," Energy Policy, Elsevier, vol. 36(6), pages 1821-1825, June.
- Holtz-Eakin, Douglas & Selden, Thomas M., 1995.
"Stoking the fires? CO2 emissions and economic growth,"
Journal of Public Economics,
Elsevier, vol. 57(1), pages 85-101, May.
- Douglas Holtz-Eakin & Thomas M. Selden, 1992. "Stoking the Fires? Co2 Emissions and Economic Growth," NBER Working Papers 4248, National Bureau of Economic Research, Inc.
- David Roodman, 2006.
"How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata,"
103, Center for Global Development.
- David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
- Sarkar, Ashok & Singh, Jas, 2010. "Financing energy efficiency in developing countries--lessons learned and remaining challenges," Energy Policy, Elsevier, vol. 38(10), pages 5560-5571, October.
- Akman, Ugur & Okay, Esin & Okay, Nesrin, 2013. "Current snapshot of the Turkish ESCO market," Energy Policy, Elsevier, vol. 60(C), pages 106-115.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kasey Kniffin).
If references are entirely missing, you can add them using this form.