Assessing the influence of manufacturing sectors on electricity demand. A cross-country input-output approach
The production and consumption of electricity is a major source of CO2 emissions in Europe and elsewhere. In turn, the manufacturing sectors are significant end-users of electricity. In contrast to most papers in the literature, which focus on the supply-side, this study tackles the demand-side of electricity. An input-output approach combined with a sensitivity analysis has been developed to analyse the direct and indirect consumptions of electricity by eighteen manufacturing sectors in fifteen European countries, with indirect electricity demand related to the purchase of industrial products from other sectors which, in turn, require the consumption of electricity in their manufacturing processes. We identify the industrial transactions and sectors, which account for a greater share of electricity demand. In addition, the impact of an electricity price increase on the costs and prices of manufacturing products is simulated through a price model, allowing us to identify those sectors whose manufacturing costs are most sensitive to an increase in the electricity price.
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