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Thermal and Economic Measures of Energy Use: Differences and Implications

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  • Jean-Thomas Bernard
  • Pierre Cauchon

Abstract

Statistical agencies often report aggregate energy use by expressing different energy types on a common basis with thermal conversion factors. Before the energy crisis of the 1970s Turvey and Nobay (1965) indicated some pitfalls associated with thermal conversion factors in the analysis of aggregate energy use. This point has been emphasized again by Berndt (1978). More recently Hong (1983) compared two Divisia indexes of energy useone of the expenditure shares and the other with thermal shares-and he found the two indexes behaved differently in the United States from 1950 to 1978. The relationship between the relative prices of energy types, which change over time, and their relative thermal contents, which are usually taken to be constant, explains why these two measures of energy use follow different paths.

Suggested Citation

  • Jean-Thomas Bernard & Pierre Cauchon, 1987. "Thermal and Economic Measures of Energy Use: Differences and Implications," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 125-135.
    • Handle: RePEc:aen:journl:1987v08-02-a09
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    Cited by:

    1. Bernard, Jean-Thomas & Lessard, François & Thivierge, Simon, 1986. "La demande d’énergie du secteur commercial québécois," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(1), pages 5-22, mars.
    2. Bernard, Jean-Thomas & Cote, Bruno, 2005. "The measurement of the energy intensity of manufacturing industries: a principal components analysis," Energy Policy, Elsevier, vol. 33(2), pages 221-233, January.
    3. Arsenault, E. & Bernard, J. -T. & Carr, C. W. & Genest-Laplante, E., 1995. "A total energy demand model of Quebec : Forecasting properties," Energy Economics, Elsevier, vol. 17(2), pages 163-171, April.
    4. Bernard, Jean-Thomas & Côté, Bruno, 2002. "L'intensité énergétique du secteur manufacturier de 1976 à 1996 Québec, Ontario, Alberta et Colombie-Britannique," Cahiers de recherche 0203, GREEN.
    5. Liao, Hua & Wei, Yi-Ming, 2010. "China's energy consumption: A perspective from Divisia aggregation approach," Energy, Elsevier, vol. 35(1), pages 28-34.
    6. Andrade Silva, Fabiano Ionta & Guerra, Sinclair Mallet Guy, 2009. "Analysis of the energy intensity evolution in the Brazilian industrial sector--1995 to 2005," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2589-2596, December.

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    JEL classification:

    • F0 - International Economics - - General

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