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The general equilibrium effects of energy efficiency gains in developing countries with urban unemployment

  • Stefan Csordas



This study is aimed at analyzing the effects of energy efficiency gains in the industrial sector of developing countries that feature urban unemployment. Such efficiency improvements will likely induce adjustment processes and structural change. Understanding the nature of such adjustments is straightforward in the (theoretical) case of economies that are free from distortions. However, in the presence of urban unemployment, the effects of energy efficiency gains are more subtle. Any change in factor productivity, be it autonomous or induced by policy measures such as technology transfer, programs to promote energy efficiency or regulations will be followed by production shifts, sectoral reallocation of labor, and internal migration. In this study, we develop a model of a dualistic economy in the spirit of Harris and Todaro (1970), and analyze the effects energy efficiency improvements.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 3 ()
Pages: 1969-1977

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Handle: RePEc:ebl:ecbull:eb-12-00553
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  1. Yabuuchi, Shigemi, 1998. "Urban Unemployment, Factor Accumulation, and Welfare," Review of Development Economics, Wiley Blackwell, vol. 2(1), pages 31-40, February.
  2. Yu, Eden S. H. & Ingene, Charles A., 1982. "The backward incidence of pollution control in a rigid-wage economy," Journal of Environmental Economics and Management, Elsevier, vol. 9(4), pages 304-310, December.
  3. Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
  4. Beladi, Hamid & Rapp, John, 1993. "Urban Unemployment and the Backward Incidence of Pollution Control," The Annals of Regional Science, Springer, vol. 27(2), pages 153-63.
  5. Beladi, Hamid & Naqvi, Nadeem, 1988. "Urban unemployment and non-immiserizing growth," Journal of Development Economics, Elsevier, vol. 28(3), pages 365-376, May.
  6. Hamid Beladi & Ralph Frasca, 1999. "Pollution control under an urban binding minimum wage," The Annals of Regional Science, Springer, vol. 33(4), pages 523-533.
  7. Wang, Leonard F. S., 1990. "Unemployment and the backward incidence of pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 292-298, May.
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