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Energy content in manufacturing exports: a cross-country analysis

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  • João Amador

Abstract

This paper compares the energy content in manufacturing exports in a set of 30 advanced and emerging economies and examines its evolution from 1995 to 2005. The paper combines information from the OECD input-output matrices and international trade data in 18 manufacturing sectors. Energy inputs are defined as those from sectors “coke, refined petroleum products and nuclear fuel” and “electricity, gas and water supply”. In addition, the value of energy inputs that is required for the production of one unit of output in a given manufacturing sector is defined as the corresponding sector's coefficient in the inverse Leontief matrix. Finally, these coefficients are weighted according to sectors' shares in countries' total manufacturing exports. The resulting indicator for the energy content of manufacturing exports is compared across countries in periods where comparable input-output matrices exist. The paper also suggests a methodology to disentangle the effects attributable to the structure of manufacturing exports and sectoral energy efficiency, presenting results according to technological categories. The paper concludes that Brazil, India and, mostly, China, present a high energy content in manufacturing exports, which has increased from 1995 to 2005. Conversely, many advanced economies, notably in Europe and North America, which showed energy contents below the world average in 1995, reinforced their position as relatively low energy intensive economies. The contribution of trade specialization and energy efficiency effects to explain differences in the energy content of exports draws attention to the situation of China. This country increased its relative energy usage in the exports of all technological categories of goods. Nevertheless, this effect was reinforced by the stronger export specialization in high-tech products and a comparatively lower specialization in medium-high-tech products.

Suggested Citation

  • João Amador, 2011. "Energy content in manufacturing exports: a cross-country analysis," Working Papers w201110, Banco de Portugal, Economics and Research Department.
  • Handle: RePEc:ptu:wpaper:w201110
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    Cited by:

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    2. Picciolo, Francesco & Papandreou, Andreas & Hubacek, Klaus & Ruzzenenti, Franco, 2017. "How crude oil prices shape the global division of labor," Applied Energy, Elsevier, vol. 189(C), pages 753-761.
    3. Marcos Gonçalves Perroni & Sérgio Eduardo Gouvêa da Costa & Sérgio Eduardo Gouvêa da Costa & Wesley Vieira da Silva & Edson Pinheiro de Lima & Edson Pinheiro de Lima & Claudimar Pereira da Veiga & Cla, 2016. "Analysis of Income Elasticities of Brazil’s Energy Matrix," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 431-441.
    4. Adewuyi, Adeolu O. & Adeniyi, Oluwatosin, 2015. "Trade and consumption of energy varieties: Empirical analysis of selected West Africa economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 354-366.
    5. Dmitry Burakov, 2016. "Elasticity of Energy Intensity on a Regional Scale: An Empirical Study of International Trade Channel," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 65-75.
    6. Zhang, Bo & Chen, Z.M. & Xia, X.H. & Xu, X.Y. & Chen, Y.B., 2013. "The impact of domestic trade on China's regional energy uses: A multi-regional input–output modeling," Energy Policy, Elsevier, vol. 63(C), pages 1169-1181.
    7. Bosupeng, Mpho, 2017. "On the Effects of the BRICS on World Economic Growth," MPRA Paper 81757, University Library of Munich, Germany, revised 2017.
    8. Bosupeng, Mpho, 2017. "Electricity Consumption and Exports Growth: Revisiting the Feedback Hypothesis," MPRA Paper 81756, University Library of Munich, Germany, revised 2017.
    9. Yurdagül Meral, 2019. "High technology export and high technology export impact on growth," Bussecon Review of Finance & Banking (2687-2501), Bussecon International, vol. 1(1), pages 26-31, July.
    10. Alexander Melnik & Kirill Ermolaev, 2020. "Strategy Context of Decision Making for Improved Energy Efficiency in Industrial Energy Systems," Energies, MDPI, Open Access Journal, vol. 13(7), pages 1-28, March.

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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