The energy efficiency paradox revisited through a partial observability approach
The present paper examines the energy efficiency paradox demonstrated in Greek manufacturing firms through a partial observability approach. The data set used has resulted from a survey carried out among 161 energy-saving technology firm adopters. Maximum likelihood estimates that arise from an incidental truncation model reveal that the adoption of the energy-saving technologies is indeed strongly correlated to the returns of assets that are required in order to undertake the corresponding investments. The source of the energy efficiency paradox lies within a wide range of factors. Policy schemes that aim to increase the adoption rate of energy-saving technologies within the field of manufacturing are significantly affected by differences in the size of firms. Finally, mixed policies seem to be more effective than policies that are only capital subsidy or regulation oriented.
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.:
- Jan Velthuijsen, 1993. "Incentives for investment in energy efficiency: an econometric evaluation and policy implications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(2), pages 153-169, April.
- Stephen J. Decanio & William E. Watkins, 1998. "Investment In Energy Efficiency: Do The Characteristics Of Firms Matter?," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 95-107, February.
- Ghemawat, Pankaj & Caves, Richard E, 1986. "Capital Commitment and Profitability: An Empirical Investigation," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 94-110, Suppl. No.
- Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-690, September.
- de Almeida, Edmar Luiz Fagundes, 1998. "Energy efficiency and the limits of market forces: The example of the electric motor market in France," Energy Policy, Elsevier, vol. 26(8), pages 643-653, July.
- de Groot, Henri L. F. & Verhoef, Erik T. & Nijkamp, Peter, 2001.
"Energy saving by firms: decision-making, barriers and policies,"
Elsevier, vol. 23(6), pages 717-740, November.
- Henri L.F.M. de Groot & Erik T. Verhoef & Peter Nijkamp, 1999. "Energy Saving by Firms: Decision-Making, Barriers and Policies," Tinbergen Institute Discussion Papers 99-031/3, Tinbergen Institute.
- Simon Feeny & Mark N. Harris & Joanne Loundes, 2000.
"A Dynamic Panel Analysis of the Profitability of Australian Tax Entities,"
Melbourne Institute Working Paper Series
wp2000n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Simon Feeny & Mark Harris & Mark Rogers, 2005. "A dynamic panel analysis of the profitability of Australian tax entities," Empirical Economics, Springer, vol. 30(1), pages 209-233, 01.
- Pindyck, Robert S., 1998.
"Irreversibilities and the timing of environmental policy,"
WP 4047-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Pindyck, Robert S., 2000. "Irreversibilities and the timing of environmental policy," Resource and Energy Economics, Elsevier, vol. 22(3), pages 233-259, July.
- Ronald J. Sutherland, 1991. "Market Barriers to Energy-Efficiency Investments," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 15-34.
- Weiss, Allen M, 1994. "The Effects of Expectations on Technology Adoption: Some Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 341-360, December.
- Pindyck, Robert S., 2002. "Optimal timing problems in environmental economics," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1677-1697, August.
- Ana Faria & Paul Fenn & Alistair Bruce, 2002. "Determinants of adoption of flexible production technologies: Evidence from portuguese manufacturing industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 569-580.
- David E. Bloom & Mark R. Killingsworth, 1984.
"Correcting for Truncation Bias Caused by a Latent Truncation Variable,"
NBER Technical Working Papers
0038, National Bureau of Economic Research, Inc.
- Bloom, David E. & Killingsworth, Mark R., 1985. "Correcting for truncation bias caused by a latent truncation variable," Journal of Econometrics, Elsevier, vol. 27(1), pages 131-135, January.
- Khanna, Madhu & Zilberman, David, 2001. "Adoption of energy efficient technologies and carbon abatement: the electricity generating sector in India," Energy Economics, Elsevier, vol. 23(6), pages 637-658, November.
- Verhoef, Erik T. & Nijkamp, Peter, 2003. "The adoption of energy-efficiency enhancing technologies.: Market performance and policy strategies in case of heterogeneous firms," Economic Modelling, Elsevier, vol. 20(4), pages 839-871, July.
- Slade, Margaret E., 2004. "Competing models of firm profitability," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 289-308, March.
- Watts, Ross L. & Zimmerman, Jerold L., 1980. "On the irrelevance of replacement cost disclosures for security prices," Journal of Accounting and Economics, Elsevier, vol. 2(2), pages 95-106, August.
- Slater, Stanley F. & Olson, Eric M., 2002. "A fresh look at industry and market analysis," Business Horizons, Elsevier, vol. 45(1), pages 15-22.
- Jacobson, Robert, 1987. "The Validity of ROI as a Measure of Business Performance," American Economic Review, American Economic Association, vol. 77(3), pages 470-478, June.
- Geroski, P. A., 2000.
"Models of technology diffusion,"
Elsevier, vol. 29(4-5), pages 603-625, April.
- Dunne, Paul & Hughes, Alan, 1994. "Age, Size, Growth and Survival: UK Companies in the 1980s," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 115-140, June.
- Sanstad, Alan H. & Howarth, Richard B., 1994. "`Normal' markets, market imperfections and energy efficiency," Energy Policy, Elsevier, vol. 22(10), pages 811-818, October.
- Jung, Chulho & Krutilla, Kerry & Boyd, Roy, 1996. "Incentives for Advanced Pollution Abatement Technology at the Industry Level: An Evaluation of Policy Alternatives," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 95-111, January.
- Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
- DeCanio, Stephen J, 1998. "The efficiency paradox: bureaucratic and organizational barriers to profitable energy-saving investments," Energy Policy, Elsevier, vol. 26(5), pages 441-454, April.
- Shama, Avraham, 1983. "Energy conservation in US buildings : Solving the high potential/low adoption paradox from a behavioural perspective," Energy Policy, Elsevier, vol. 11(2), pages 148-167, June.
- Stoneman, Paul L & David, Paul A, 1986. "Adoption Subsidies vs Information Provision as Instruments of Technology Policy," Economic Journal, Royal Economic Society, vol. 96(380a), pages 142-150, Supplemen.
- Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy paradox and the diffusion of conservation technology," Resource and Energy Economics, Elsevier, vol. 16(2), pages 91-122, May.
- David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468.
- Fisher, Franklin M & McGowan, John J, 1983. "On the Misuse of Accounting Rates of Return to Infer Monopoly Profits," American Economic Review, American Economic Association, vol. 73(1), pages 82-97, March.
- Schwert, G William, 1981. "Using Financial Data to Measure Effects of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 121-158, April.
- Hirschey, Mark, 1985. "Market Structure and Market Value," The Journal of Business, University of Chicago Press, vol. 58(1), pages 89-98, January.
- Hirschey, Mark, 1986. "Mergers, Buyouts and Fakeouts," American Economic Review, American Economic Association, vol. 76(2), pages 317-322, May.
- Riccardo Lucchetti & Alessandro Sterlacchini, 2004. "The Adoption of ICT among SMEs: Evidence from an Italian Survey," Small Business Economics, Springer, vol. 23(2), pages 151-168, 09.
- Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131.
- Blackman, Allen & Bannister, Geoffrey J., 1998. "Community Pressure and Clean Technology in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Mexican Brickmakers," Journal of Environmental Economics and Management, Elsevier, vol. 35(1), pages 1-21, January.
- Daan van Soest & Erwin Bulte, 2001. "Does the Energy-Efficiency Paradox Exist? Technological Progress and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(1), pages 101-112, January.
- Takehiko Yasuda, 2005. "Firm Growth, Size, Age and Behavior in Japanese Manufacturing," Small Business Economics, Springer, vol. 24(1), pages 1-15, December.
- McFarland, Henry B, 1988. "Evaluating q as an Alternative to the Rate of Return in Measuring Profitability," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 614-622, November.
- Teece, David J, 1981. "Internal Organization and Economic Performance: An Empirical Analysis of the Profitability of Principal Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 30(2), pages 173-199, December.
- Richard B. Howarth & Alan H. Sanstad, 1995. "Discount Rates And Energy Efficiency," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 101-109, 07.
- Pizer, William & Kopp, Raymond & Morgenstern, Richard & Harrington, Winston & Shih, Jhih-Shyang, 2002. "Technology Adoption and Aggregate Energy Efficiency," Discussion Papers dp-02-52, Resources For the Future.
- DeCanio, Stephen J., 1993. "Barriers within firms to energy-efficient investments," Energy Policy, Elsevier, vol. 21(9), pages 906-914, September.
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:30:y:2008:i:5:p:2517-2536. 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: (Dana Niculescu)
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.