The modest environmental relief resulting from the transition to a service economy
A service transition is supposed to lead to the decline of energy intensity (energy/GDP). We argue that this interpretation is overly optimistic because the shift to a service economy is somewhat of an illusion in terms of real production. Several recent studies of structural effects on energy intensity have made the error of using sector shares in current prices, combined with GDP in constant prices, which is inconsistent and ignores the different behaviour of prices across sectors. We use the more correct method of sector shares in constant prices, and make an attempt to single out the effect from the real service transition by using two complementary methods: shift share analyses in current and constant prices, and Logarithmic Mean Divisia Index (LMDI) for 10 developed and 3 emerging economies. A service transition is rather modest in real terms. The major driver of the decline in energy intensity rests within the manufacturing sector. Meanwhile, the transition to a service sector had a small downward impact on energy intensity in 7 of the developed countries (and no impact in the others). For emerging economies like Brazil, Mexico and India, it is the residential sector that drives energy intensity down because of the declining share of this sector as the formal economy grows, and as a consequence of switching to more efficient fuels.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Stern, David I., 2004.
"The Rise and Fall of the Environmental Kuznets Curve,"
Elsevier, vol. 32(8), pages 1419-1439, August.
- 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.
- Mosk, Carl, 1978. "Fecundity, infanticide, and food consumption in Japan," Explorations in Economic History, Elsevier, vol. 15(3), pages 269-289, July.
- Jens J. Krüger, 2008. "Productivity And Structural Change: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 330-363, 04.
- Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, 06.
- Bart van Ark & Marcin Piatkowski, 2004.
"Productivity, innovation and ICT in Old and New Europe,"
International Economics and Economic Policy,
Springer, vol. 1(2), pages 215-246, January.
- Ark, Bart van & Piatkowski, Marcin, 2004. "Productivity, innovation and ICT in old and new Europe," GGDC Research Memorandum 200469, Groningen Growth and Development Centre, University of Groningen.
- Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985.
"Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence,"
American Economic Review,
American Economic Association, vol. 75(4), pages 806-817, September.
- Baumol, William J. & Batey Blackman, Sue Anne & Wolff, Edward N., 1984. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," Working Papers 84-02, C.V. Starr Center for Applied Economics, New York University.
- Ark, Bart van, 1995. "Sectoral growth accounting and structural change in postwar Europe," GGDC Research Memorandum 199523, Groningen Growth and Development Centre, University of Groningen.
- Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
- Schipper, Lee & Figueroa, Maria J. & Price, Lynn & Espey, Molly, 1993.
"Mind the Gap: The Vicious Circle of Measuring Automobile Fuel Use,"
University of California Transportation Center, Working Papers
qt06n8g4x9, University of California Transportation Center.
- Schipper, Lee & Figueroa, Maria Josefina & Price, Lynn & Espey, Molly, 1993. "Mind the gap The vicious circle of measuring automobile fuel use," Energy Policy, Elsevier, vol. 21(12), pages 1173-1190, December.
- Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
- Hamilton, Clive & Turton, Hal, 2002. "Determinants of emissions growth in OECD countries," Energy Policy, Elsevier, vol. 30(1), pages 63-71, January.
- Ang, B.W. & Liu, Na, 2007. "Energy decomposition analysis: IEA model versus other methods," Energy Policy, Elsevier, vol. 35(3), pages 1426-1432, March.
- Choi, Ki-Hong & Ang, B. W., 2003. "Decomposition of aggregate energy intensity changes in two measures: ratio and difference," Energy Economics, Elsevier, vol. 25(6), pages 615-624, November.
- repec:dgr:rugggd:199523 is not listed on IDEAS
- Schafer, Andreas, 2005. "Structural change in energy use," Energy Policy, Elsevier, vol. 33(4), pages 429-437, March.
- Kander, Astrid, 2005. "Baumol's disease and dematerialization of the economy," Ecological Economics, Elsevier, vol. 55(1), pages 119-130, October.
- repec:dgr:rugggd:200469 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:271-282. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.