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Decomposing energy demand across BRIIC countries

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  • Adetutu, Morakinyo O.
  • Glass, Anthony J.
  • Weyman-Jones, Thomas G.

Abstract

Energy plays an important role within the production technology of fast emerging economies, such that firms' reaction to changes in energy prices provides useful information on factor productivity and factor intensity, as well as the likely outcome of energy policy initiatives, among other things. Drawing on duality theory, this paper decomposes changes in energy demand into substitution and output effects using annual sector-level production data for Brazil, Russia, India, Indonesia and China (BRIIC) for the period 1995–2009. Unlike previous studies, this study analyzed the economic properties of the underlying production technology. Results indicate that changes in energy demand are strongly dominated by substitution effects. More importantly, an intriguing finding that emerges from our analysis is the role of economies of scale and factor accumulation, as opposed to technical progress, in giving rise to the growth performance of sampled economies.

Suggested Citation

  • Adetutu, Morakinyo O. & Glass, Anthony J. & Weyman-Jones, Thomas G., 2016. "Decomposing energy demand across BRIIC countries," Energy Economics, Elsevier, vol. 54(C), pages 396-404.
    • Handle: RePEc:eee:eneeco:v:54:y:2016:i:c:p:396-404
    DOI: 10.1016/j.eneco.2016.01.001
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    Cited by:

    1. Victor Ajayi & David Reiner, 2018. "European Industrial Energy Intensity: The Role of Innovation 1995-2009," Working Papers EPRG 1818, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
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    4. Sharimakin, Akinsehinwa, 2021. "Modelling asymmetric price responses of industrial energy demand with a dynamic hierarchical model," Energy Economics, Elsevier, vol. 98(C).
    5. Xiao, De & Yu, Fan & Guo, Chenhao, 2023. "The impact of China's pilot carbon ETS on the labor income share: Based on an empirical method of combining PSM with staggered DID," Energy Economics, Elsevier, vol. 124(C).
    6. Yuan, Zhen & Xu, Jie & Li, Bing & Yao, Tingting, 2022. "Limits of technological progress in controlling energy consumption: Evidence from the energy rebound effects across China's industrial sector," Energy, Elsevier, vol. 245(C).
    7. Kang, Hyonyong & Suh, Dong Hee, 2025. "Exploring the output effects on price-induced interfuel substitution and carbon dioxide emission," Energy Economics, Elsevier, vol. 143(C).
    8. Sharimakin, Akinsehinwa & Glass, Anthony J. & Saal, David S. & Glass, Karligash, 2018. "Dynamic multilevel modelling of industrial energy demand in Europe," Energy Economics, Elsevier, vol. 74(C), pages 120-130.
    9. Rahko, Jaana, 2025. "Vertical spillovers and the energy intensity of European industries," Energy Economics, Elsevier, vol. 141(C).

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    More about this item

    Keywords

    BRIIC countries; Input demand; Duality; Production technology; Translog cost function; Slutsky decomposition;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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