Skip to main content
Article thumbnail
Location of Repository

Energy consumption, technological progress and economic policy

By Théophile Azomahou, Raouf Boucekkine and Phu Nguyen Van

Abstract

We first provide an empirical study of the energy-saving technological progress on the ENERDATA database. Energy intensity is shown to decrease over the period 1971-1999 in OECD countries, indicating a significant energy-saving technical progress trend. We also show via semi-parametric partially linear estimations that: (i) this trend is positively correlated with the investment rate, and (ii) the marginal productivity of investment has accelerated in the sub-period 1985-1999 compared to 1971-1984. Second, we build a general equilibrium vintage capital model with embodied energy-saving technical progress to formalize these ndings. In this set-up, we study to which extent a steady increase in the marginal productivity of investment goods and/or scrapping subsidies could compensate the output loss due to a cut in energy use. The latter scal policy is shown to be particularly inefficient in this respect, specially under slow energy-saving technical progress. In the end, our model predicts that the implementation of Kyoto-like protocols in the computers age is much less painful than what it could have been two decades ago, particularly in the USA, which can even improve their relative position if the requested energy cut rates are not "too" unequal across countries

Topics: IRES and CORE, Université catholique de Louvain, Louvain-la-Neuve
Year: 2003
OAI identifier: oai:CiteSeerX.psu:10.1.1.196.4209
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.ires.ucl.ac.be/DP/I... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.