Peeling the Onion: Analyzing Aggregate, National and Sectoral Energy Intensity in the European Union

40 Pages Posted: 17 Mar 2015

See all articles by Andreas Löschel

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics

Frank Pothen

Fraunhofer Gesellschaft - Fraunhofer Center for International Management and Knowledge Economy IMW

Michael Schymura

ZEW – Leibniz Centre for European Economic Research

Date Written: January 26, 2015

Abstract

One of the most promising ways of meeting climate policy targets is improving energy efficiency, i.e. reducing the amount of scarce and polluting resources needed to produce a given quantity of output. This study undertakes an empirical exercise using the World Input-Output Database (WIOD), a harmonized dataset comprising time-series of input-output tables along with environmental satellite accounts and socioeconomic information. The paper consists of two parts. In the first part we begin with an aggregated picture of EU27 energy intensity and its evolution between 1995 and 2009. Then we dig deeper and introduce sectoral detail to identify the economic changes that occurred during the same period. Finally, we disaggregate the EU27 into countries for regional analysis and perform a sectoral disaggregation for a fine-grained picture of energy intensity in Europe. In the second part of the study we take our findings from index decomposition analysis and subject them to panel estimations. The objective is to control for factors that may have shaped the evolution of energy intensity in the European Union. In particular, we investigate the impact of technological change, structural change, trade, environmental regulation and country-specific characteristics.

Keywords: Environmental and Climate Economics, Energy Intensity, Index Decomposition

JEL Classification: Q0, Q50

Suggested Citation

Löschel, Andreas and Pothen, Frank and Schymura, Michael, Peeling the Onion: Analyzing Aggregate, National and Sectoral Energy Intensity in the European Union (January 26, 2015). ZEW - Centre for European Economic Research Discussion Paper No. 15-011, Available at SSRN: https://ssrn.com/abstract=2578952 or http://dx.doi.org/10.2139/ssrn.2578952

Andreas Löschel (Contact Author)

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics ( email )

Universitätsstr. 14-16
48143 Munster
Germany

HOME PAGE: http://www.wiwi.uni-muenster.de/eroe

Frank Pothen

Fraunhofer Gesellschaft - Fraunhofer Center for International Management and Knowledge Economy IMW ( email )

Neumarkt 9-19
Leipzig, Saxony 04109
Germany

Michael Schymura

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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