Energy-Saving Technological Change in Japan
The energy-dependence of Japan's economy declined considerably following the first oil crisis in 1973. This paper examines what caused the sharp drop in the use of energy per unit of gross national product (GNP) observed in the 1970s and 1980s, using a simple neo-classical growth model with energy as a third production input. Two possible candidates are investigated: (i) the substitution effect due to changes in the relative price of energy, and (ii) energy-saving technological progress. The findings are as follows. First, the substitution effect alone is weak and alone cannot account for the decline in the energy-GNP ratio. Second, the estimated level of energy-saving technology more than tripled between 1970 and the late 1980s, and the model with energy-saving technological progress is able to explain the drop in the energy-GNP ratio well.
|Date of creation:||Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sami Alpanda & Adrian Peralta-Alva, 2008.
"Oil crisis, energy-saving technological change and the stock market crash of 1973-74,"
2008-019, Federal Reserve Bank of St. Louis.
- Sami Alpanda & Adrian Peralta-Alva, 2010. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(4), pages 824-842, October.
- Alpanda, Sami & Peralta-Alva, Adrian, 2007. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," MPRA Paper 5896, University Library of Munich, Germany.
- Adrian Peralta-Alva & Sami Alpanda, 2004. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," Macroeconomics 0405019, EconWPA.
- Sami Alpanda & Adrian Peralta-Alva, 2003. "Oil Crisis, Energy-Saving Technological Change and the Stock Market Crash of 1973-74," Working Papers 0604, University of Miami, Department of Economics, revised Dec 2006.
- Kensuke Miyazawa, 2009. "Estimation of the elasticity of substitution between oil and capital," Economics Bulletin, AccessEcon, vol. 29(2), pages 655-660.
- Morrison, C. J. & Berndt, E. R., 1981. "Short-run labor productivity in a dynamic model," Journal of Econometrics, Elsevier, vol. 16(3), pages 339-365, August.
- Ichiro Fukunaga & Mitsuhiro Osada, 2009. "Measuring Energy-Saving Technical Change in Japan," Bank of Japan Working Paper Series 09-E-5, Bank of Japan.
- Keisuke Otsu, 2007.
"A Neoclassical Analysis of the Postwar Japanese Economy,"
IMES Discussion Paper Series
07-E-01, Institute for Monetary and Economic Studies, Bank of Japan.
- Otsu Keisuke, 2009. "A Neoclassical Analysis of the Postwar Japanese Economy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-30, May.
- Kobayashi, Keiichiro & Inaba, Masaru, 2006.
"Business cycle accounting for the Japanese economy,"
Japan and the World Economy,
Elsevier, vol. 18(4), pages 418-440, December.
- Keiichiro Kobayashi & Masaru Inaba, 2006. "Business cycle accounting for the Japanese economy," 2006 Meeting Papers 313, Society for Economic Dynamics.
- Keiichiro Kobayashi & Masaru Inaba, 2005. "Business Cycle Accounting for the Japanese Economy," Discussion papers 05023, Research Institute of Economy, Trade and Industry (RIETI).
- Hassler, John & Krusell, Per & Olovsson, Conny, 2012.
"Energy-Saving Technical Change,"
CEPR Discussion Papers
9177, C.E.P.R. Discussion Papers.
- Kaiji Chen & Ayse Imrohoroglu & Selo Imrohoroglu, 2005.
"Japanese Saving Rate,"
When requesting a correction, please mention this item's handle: RePEc:hst:ghsdps:gd11-218. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino)
If references are entirely missing, you can add them using this form.