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Measuring Energy-Saving Technical Change in Japan

Author

Listed:
  • Ichiro Fukunaga

    (Bank of Japan)

  • Mitsuhiro Osada

    (Bank of Japan)

Abstract

In this paper, we estimate time-varying biases of technical change and their effects on productivity using econometric models of aggregate and industry-level technology in Japan. In our aggregate model, the bias of technical change for energy input was energy-saving in the 1980s but gradually switched to energy-using around 2000. We found little evidence that producers switched to energy-saving technical change by the end of 2008 in response to the recent surge in energy prices. As a result, rising energy prices under the energy-using technical change have contributed to a slowdown in TFP growth. Meanwhile, the labor-saving technical change has made large positive contributions to TFP growth and labor productivity growth. In our models of individual industries, the biases of technical change for energy have been small since the 1980s and those for materials have been substantially materials-saving in many industries.

Suggested Citation

  • Ichiro Fukunaga & Mitsuhiro Osada, 2009. "Measuring Energy-Saving Technical Change in Japan," Bank of Japan Working Paper Series 09-E-5, Bank of Japan.
    • Handle: RePEc:boj:bojwps:09-e-5
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    File URL: http://www.boj.or.jp/en/research/wps_rev/wps_2009/data/wp09e05.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kosuke Aoki & Jouchi Nakajima & Masato Takahashi & Tomoyuki Yagi & Kotone Yamada, 2023. "Energy Efficiency in Japan: Developments in the Business and Household Sectors, and Implications for Carbon Neutrality," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 41, pages 81-110, November.
    2. Niizeki Takeshi, 2014. "Capacity utilization and the effects of energy price increases in Japan," The B.E. Journal of Macroeconomics, De Gruyter, vol. 14(1), pages 241-266, January.
    3. Yoshiyuki Kurachi & Hajime Morishima & Hiroshi Kawata & Ryo Shibata & Kazuma Bunya & Jin Moteki, 2022. "Challenges for Japan's Economy in the Decarbonization Process," Bank of Japan Research Papers 22-06-09, Bank of Japan.
    4. Hitoshi SATO, 2013. "On Biased Technical Change: Was technological change in Japan electricity-saving?," Discussion papers 13077, Research Institute of Economy, Trade and Industry (RIETI).
    5. Takeshi Niizeki, 2012. "Energy-Saving Technological Change in Japan," Global COE Hi-Stat Discussion Paper Series gd11-218, Institute of Economic Research, Hitotsubashi University.
    6. Kosuke Aoki & Jouchi Nakajima & Masato Takahashi & Tomoyuki Yagi & Kotone Yamada, "undated". "Energy Efficiency in Japan: Developments in the Business and Household Sectors, and Implications for Carbon Neutrality," Bank of Japan Working Paper Series 23-E-10, Bank of Japan.

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    Keywords

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    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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