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Moving from final to useful stage in energy-economy analysis: A critical assessment

Emmanuel Aramendia, Paul E. Brockway, Massimo Pizzol and Matthew K. Heun

Applied Energy, 2021, vol. 283, issue C, No S0306261920315944

Abstract: Given the climate change emergency, reducing energy consumption, which is responsible for most greenhouse gases emissions worldwide, is a priority. However, the strong historical link between energy consumption and economic growth questions whether continued economic growth is compatible with energy conservation targets. Conventional final energy analysis (common analysis methods applied at the final energy stage) has provided limited insights to this nexus. In response, this paper explores the extent to which useful stage analysis provides additional insights using three common methods: aggregate energy-economy analysis (growth rates, energy intensities, and Index Decomposition Analysis), energy-GDP causality testing, and Aggregate Production Function modelling, using Spain (1960–2016) as empirical case study.

Date: 2021
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DOI: 10.1016/j.apenergy.2020.116194

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Handle: RePEc:eee:appene:v:283:y:2021:i:c:s0306261920315944