Industrial energy demand and energy efficiency – Evidence from Sweden

Tommy Lundgren, Per-Olov Marklund and Shanshan Zhang

Resource and Energy Economics, 2016, vol. 43, issue C, 130-152

Abstract: This paper estimates firm level energy demand and energy efficiency for 14 sectors in Swedish manufacturing using stochastic frontier analysis (SFA). We derive sector level energy demand frontiers that account for firm specific heterogeneity. Results show that there is potential to improve energy efficiency for fuel and electricity use in all sectors; energy intensity is not an appropriate proxy for energy efficiency; the EU ETS had a modest or no effect on Swedish firms’ efficient use of energy during the first trading phase and the beginning of the second, indicating that the carbon permit price was too low to generate the necessary incentives for energy efficiency investments.

Keywords: Energy demand; Energy efficiency; Manufacturing industry; Stochastic frontier analysis; True random effects (search for similar items in EconPapers)
JEL-codes: D22 D24 L60 Q41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:43:y:2016:i:c:p:130-152

DOI: 10.1016/j.reseneeco.2016.01.003

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