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What causes the change in energy demand in the economy?: The role of technological change

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  • Okushima, Shinichiro
  • Tamura, Makoto

Abstract

This paper proposes a simple and theoretically clear approach to the estimation of technological change in a multisector general equilibrium framework. This study employs the Multiple Calibration Decomposition Analysis (MCDA) to evaluate technological change that is responsible for changes in energy use and carbon dioxide emissions in the Japanese economy in the oil crises period from 1970 to 1985. The MCDA serves as an elementary way of separating structural change due to technological change from that due to price substitution effects, capturing the interdependence among economic sectors. The empirical result provides a better understanding of the effects on the economy of technological change in that significant period.

Suggested Citation

  • Okushima, Shinichiro & Tamura, Makoto, 2010. "What causes the change in energy demand in the economy?: The role of technological change," Energy Economics, Elsevier, vol. 32(Supplemen), pages 41-46, September.
  • Handle: RePEc:eee:eneeco:v:32:y:2010:i:supplement1:p:s41-s46
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    References listed on IDEAS

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    1. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," Review of Economic Studies, Oxford University Press, vol. 34(3), pages 249-283.
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    3. Stephen Casler & Adam Rose, 1998. "Carbon Dioxide Emissions in the U.S. Economy: A Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 349-363, April.
    4. Okushima, Shinichiro & Tamura, Makoto, 2007. "Multiple calibration decomposition analysis: Energy use and carbon dioxide emissions in the Japanese economy, 1970-1995," Energy Policy, Elsevier, vol. 35(10), pages 5156-5170, October.
    5. 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.
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    7. Zvi Griliches, 1996. "The Discovery of the Residual: A Historical Note," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1324-1330, September.
    8. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
    9. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
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    Citations

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    Cited by:

    1. Ning Chang & Michael L. Lahr, 2016. "Changes in China’s production-source CO 2 emissions: insights from structural decomposition analysis and linkage analysis," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 224-242, June.
    2. Kim, Yong-Gun & Yoo, Jonghyun & Oh, Wankeun, 2015. "Driving forces of rapid CO2 emissions growth: A case of Korea," Energy Policy, Elsevier, vol. 82(C), pages 144-155.
    3. Cansino, J.M. & Cardenete, M.A. & Ordóñez, M. & Román, R., 2012. "Economic analysis of greenhouse gas emissions in the Spanish economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6032-6039.
    4. Okushima, Shinichiro & Tamura, Makoto, 2011. "Identifying the sources of energy use change: Multiple calibration decomposition analysis and structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 22(4), pages 313-326.
    5. Karanfil, Fatih & Yeddir-Tamsamani, Yasser, 2010. "Is technological change biased toward energy? A multi-sectoral analysis for the French economy," Energy Policy, Elsevier, vol. 38(4), pages 1842-1850, April.
    6. Yang, Lisha & Li, Zhi, 2017. "Technology advance and the carbon dioxide emission in China – Empirical research based on the rebound effect," Energy Policy, Elsevier, vol. 101(C), pages 150-161.
    7. repec:eco:journ2:2017-04-31 is not listed on IDEAS
    8. Salisu, Afees A. & Ayinde, Taofeek O., 2016. "Modeling energy demand: Some emerging issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1470-1480.

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