Analysing the drivers of the intensity of electricity consumption of non-residential sectors in Europe
María Jesús Gutiérrez-Pedrero,
Miguel Ángel Tarancón,
Pablo del Río and
Vicent Alcantara ()
Applied Energy, 2018, vol. 211, issue C, 743-754
The electricity consumption of non-residential productive sectors represents a significant share of the overall energy consumption in the Member States of the European Union. Therefore, determining the main factors affecting the intensity of such consumption (defined as the ratio of the electricity consumed by the productive system of a given country to gross value added) is a research effort worth undertaking. The aim of this paper is to identify the main factors which affect such intensity with the help of a static panel data model, which is estimated with three different methods. Our results show that a higher degree of technological progress in the production systems and higher retail prices of electricity for non-residential consumers reduce such intensity. Other variables, which are statistically significant, lead to an increase of electricity intensity, including the accumulated stock of physical capital and the lagged gross fixed capital formation. The accumulated capital stock per unit of GDP is the variable with the highest influence on electricity intensity. Whereas the influence of price changes is limited, these results indicate that there is some rigidity to change energy intensity through demand-side policy measures, suggesting that they will need to be complemented with supply-side measures aimed at increasing low-carbon electricity generation capacity.
Keywords: Electricity demand; Electricity intensity; Electricity price; Non-residential sectors (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:211:y:2018:i:c:p:743-754
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic
Access Statistics for this article
Applied Energy is currently edited by J. Yan
More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Haili He ().