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Decomposing energy demand across BRIIC countries

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journal contribution
posted on 25.01.2016 by Morakinyo O. Adetutu, Anthony Glass, Thomas G. Weyman-Jones
Energy plays an important role within the production technology of fast emerging economies, such that firms' reaction to changes in energy prices provides useful information on factor productivity and factor intensity, as well as the likely outcome of energy policy initiatives, among other things. Drawing on duality theory, this paper decomposes changes in energy demand into substitution and output effects using annual sector-level production data for Brazil, Russia, India, Indonesia and China (BRIIC) for the period 1995–2009. Unlike previous studies, this study analyzed the economic properties of the underlying production technology. Results indicate that changes in energy demand are strongly dominated by substitution effects. More importantly, an intriguing finding that emerges from our analysis is the role of economies of scale and factor accumulation, as opposed to technical progress, in giving rise to the growth performance of sampled economies.

History

School

  • Business and Economics

Department

  • Economics

Published in

Energy Economics

Citation

GLASS, A.J., ADETUTU, M. and WEYMAN-JONES, T.G., 2016. Decomposing energy demand across BRIIC countries. Energy Economics, 54, pp.396-404.

Publisher

© Elsevier

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2016

Notes

This paper was accepted for publication in the journal Energy Economics and the definitive published version is available at http://dx.doi.org/10.1016/j.eneco.2016.01.001.

ISSN

0140-9883

Language

en

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