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

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  • Stefan Csordas

    () (stefan.csordas@gmx.net)

Abstract

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.

Suggested Citation

  • Stefan Csordas, 2013. "The general equilibrium effects of energy efficiency gains in developing countries with urban unemployment," Economics Bulletin, AccessEcon, vol. 33(3), pages 1969-1977.
  • Handle: RePEc:ebl:ecbull:eb-12-00553
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P184.pdf
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    References listed on IDEAS

    as
    1. Beladi, Hamid & Rapp, John, 1993. "Urban Unemployment and the Backward Incidence of Pollution Control," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(2), pages 153-163.
    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. Yabuuchi, Shigemi, 1998. "Urban Unemployment, Factor Accumulation, and Welfare," Review of Development Economics, Wiley Blackwell, vol. 2(1), pages 31-40, February.
    4. Hamid Beladi & Ralph Frasca, 1999. "Pollution control under an urban binding minimum wage," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(4), pages 523-533.
    5. Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
    6. 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.
    7. Beladi, Hamid & Naqvi, Nadeem, 1988. "Urban unemployment and non-immiserizing growth," Journal of Development Economics, Elsevier, vol. 28(3), pages 365-376, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Energy efficiency; urban unemployment; general equilibrium effects;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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