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Population Density and Efficiency in Energy Consumption: An empirical analysis of service establishments

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  • MORIKAWA Masayuki

Abstract

The achievement of both sustainable economic growth and reductions in CO2 emissions has been an important policy agenda in recent years. This study, using novel establishment-level microdata from the Energy Consumption Statistics, empirically analyzes the effect of urban density on energy intensity in the service sector. According to the analysis, the efficiency of energy consumption in service establishments is higher for densely populated cities. Quantitatively, after controlling for differences among industries, energy efficiency increases by approximately 12% when the density in a municipality population doubles. This result suggests that, given a structural transformation toward the service economy, deregulation of excessive restrictions hindering urban agglomeration, and investment in infrastructure in city centers would contribute to environmentally friendly economic growth.

Suggested Citation

  • MORIKAWA Masayuki, 2011. "Population Density and Efficiency in Energy Consumption: An empirical analysis of service establishments," Discussion papers 11058, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:11058
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    Cited by:

    1. Radoslaw Stefanski, 2014. "Dirty Little Secrets: Inferring Fossil-Fuel Subsidies from Patterns in Emission Intensities," OxCarre Working Papers 134, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    2. Fabio Grazi & Henri Waisman, 2015. "Agglomeration, Urban Growth and Infrastructure in Global Climate Policy: A Dynamic CGE Approach," Working Papers 2015.61, Fondazione Eni Enrico Mattei.
    3. repec:eee:energy:v:134:y:2017:i:c:p:991-1000 is not listed on IDEAS
    4. Borck, Rainald & Tabuchi, Takatoshi, 2015. "Pollution and city size: can cities be too small?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113124, Verein für Socialpolitik / German Economic Association.
    5. Akihiro Otsuka & Mika Goto, 2015. "Estimation and determinants of energy efficiency in Japanese regional economies," Regional Science Policy & Practice, Wiley Blackwell, vol. 7(2), pages 89-101, June.
    6. repec:eee:enepol:v:108:y:2017:i:c:p:271-280 is not listed on IDEAS
    7. repec:eee:enepol:v:117:y:2018:i:c:p:208-217 is not listed on IDEAS
    8. Bagayev, Igor & Najman, Boris, 2013. "Less quality more costs: Does local power sector reliability matter for electricity intensity?," MPRA Paper 46943, University Library of Munich, Germany.
    9. repec:gam:jeners:v:11:y:2018:i:6:p:1557-:d:152445 is not listed on IDEAS
    10. Bagayev, Igor & Najman, Boris, 2014. "Money to fill the gap? Local financial development and energy intensity in Europe and Central Asia," MPRA Paper 55193, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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