Industry-mix effects at different levels of sectoral disaggregation: a decomposition of inter-country differences in energy costs

Wolfgang Koller (), Andreas Eder and Bernhard Mahlberg
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Wolfgang Koller: Institute for Industrial Research

Empirica, 2023, vol. 50, issue 4, No 3, 883-897

Abstract: Abstract This article develops a decomposition of inter-country differences of unit energy costs (UEC) of the manufacturing sector. UEC are decomposed into a structural (industry-mix) component and an autonomous component that captures all other effects like, e.g., differences in energy efficiency and energy prices. Based on NACE 3-digit level data from Eurostat’s Structural Business Statistics the industry-mix component can be quantified on different levels of sectoral disaggregation. The results show that not only industry-mix effects on the conventional (typically NACE 2-digit) but also those measurable at higher levels of disaggregation are relevant for comparison of energy costs across countries.

Keywords: Decomposition analysis; Unit energy costs; Structural effect; Industrial composition; Aggregation bias (search for similar items in EconPapers)
JEL-codes: C43 L60 Q41 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10663-023-09593-w

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