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Decomposing energy productivity change: A distance function approach

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  • Wang, Chunhua

Abstract

By using output distance functions, this paper decomposes energy productivity change into several components: effects of the changes in the ratios of non-energy inputs to energy, energy supply composition, and output composition; technical efficiency change; technological change. We apply this method to decompose energy productivity change in 23 OECD countries between 1980 and 1990. Results show that technological change is the most important source; increase in capital–energy ratio and the growing importance within total energy supply of electricity also contribute to it.

Suggested Citation

  • Wang, Chunhua, 2007. "Decomposing energy productivity change: A distance function approach," Energy, Elsevier, vol. 32(8), pages 1326-1333.
    • Handle: RePEc:eee:energy:v:32:y:2007:i:8:p:1326-1333
    DOI: 10.1016/j.energy.2006.10.001
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