Energy prices, production and the adoption of cogeneration in the UK and the Netherlands

David Bonilla

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper investigates economic incentives influencing the adoption of energy saving technology by industry, namely, CHP in UK and Dutch manufacturing sectors. The empirical analysis is based on a cross sectional time series econometric model, and examines how industrial output and historical increases in the price of electricity relative to gas prices, spark the diffusion of CHP. Production and price elasticities are estimated across heterogeneous industrial groups. Using data for 13 manufacturing sectors the model shows that fuel cost savings and industry output impact significantly on CHP uptake. Model outcomes are found to differ depending on the period of estimation and the estimation period is key in determining the impact of gas price and purchased power prices on adoption of CHP.

Keywords: energy; manufacturing sector; econometric modeling; electricity prices; energy conservation; technology diffusion (search for similar items in EconPapers)
JEL-codes: C23 C50 L6 Q40 (search for similar items in EconPapers)
Pages: 27
Date: 2006-06
New Economics Papers: this item is included in nep-ene and nep-ino
Note: IO
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0646

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