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Technology Invention and Diffusion in Residential Energy Consumption. A Stochastic Frontier Approach

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  • Marin, Giovanni
  • Palma, Alessandro

Abstract

Traditional large appliances absorb a large share of residential electricity consumption and represent important targets of energy policy strategies aimed at achieving energy security. Despite being characterized by rather mature technologies, this group of appliances still offers large potential in terms of efficiency gains due to their pervasive diffusion. In this paper we analyse the electricity consumption of a set of four traditional ‘white goods’ in a panel of ten EU countries observed over 21 years (1990-2010), with the aim of disentangling the amount of technical efficiency from the overall energy saving. The technical efficiency trend is modelled through a set of technology components representing both the invention and adoption process by means of specific patents weighted by production and bilateral import flows, which allows to overcome the rigid Stochastic Frontier framework in modelling the effect of technical change. Our results show that the derived energy demand and inefficiency trends are both related to changes in the amount of available technology embodied in energy efficient appliances. The effect is significant both in its domestic and international components and suggests an active role of innovation and trade policies for achieving efficiency targets which directly impact the amount of electricity consumed by households.

Suggested Citation

  • Marin, Giovanni & Palma, Alessandro, "undated". "Technology Invention and Diffusion in Residential Energy Consumption. A Stochastic Frontier Approach," Energy: Resources and Markets 230687, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemer:230687
    DOI: 10.22004/ag.econ.230687
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    Cited by:

    1. is not listed on IDEAS
    2. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    3. Siliang Yi & Chuyuan Zou, 2023. "Assessing Transformation Practices in China under Energy and Environmental Policy Goals: A Green Design Perspective," Sustainability, MDPI, vol. 15(4), pages 1-12, February.
    4. Tingting Xiao & Zhong Liu, 2023. "Air Pollution and Enterprise Energy Efficiency: Evidence from Energy-Intensive Manufacturing Industries in China," Sustainability, MDPI, vol. 15(7), pages 1-17, April.

    More about this item

    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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