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Decomposing energy productivity change: A distance function approach

Authors
Journal
Energy
0360-5442
Publisher
Elsevier
Publication Date
Volume
32
Issue
8
Identifiers
DOI: 10.1016/j.energy.2006.10.001
Keywords
  • Energy Productivity
  • Output Distance Function
  • Malmquist Productivity Change Index

Abstract

Abstract By using output distance functions, this paper decomposes energy productivity change into several components: effects of the changes in the ratios of non-energy inputs to energy, energy supply composition, and output composition; technical efficiency change; technological change. We apply this method to decompose energy productivity change in 23 OECD countries between 1980 and 1990. Results show that technological change is the most important source; increase in capital–energy ratio and the growing importance within total energy supply of electricity also contribute to it.

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