Energy price, energy efficiency, and capital productivity: Empirical investigations and policy implications
Samuel Gamtessa and
Adugna Olani ()
Energy Economics, 2018, vol. 72, issue C, 650-666
The immediate effect of carbon pricing policy is to raise energy costs, which in turn reduces energy consumption either through induced capital under-utilization or investments in new energy-efficient capital. The latter mechanism, which implies improvements in energy efficiency, is realized in the long-run while the former, which has implications for capital productivity, tends to occur in the short-run. We employ panel vector autoregressions as well as co-integration and error correction techniques to identify these short- and long-run relationships including their differences across Canadian industries.
Keywords: Energy intensities; Capital productivity; Energy price; Panel structural VAR; Panel error-correction (search for similar items in EconPapers)
JEL-codes: Q21 Q41 Q43 Q48 Q52 E22 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:72:y:2018:i:c:p:650-666
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