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Changes in the energy cost of goods and services of the Japanese economy

Xiaoli Han and T. R. Lakshmanan
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Xiaoli Han: Advanced Management Technology, 1250 Maryland Ave. SW, Suite 100, Washington, DC 20024, USA (Tel.:
T. R. Lakshmanan: Director, Bureau of Transportation Statistics, US Department of Transportation, 400 Seventh Street, SW, Washington, DC 20590, USA (Tel.:

The Annals of Regional Science, 1995, vol. 29, issue 3, 277-302

Abstract: This paper analyzes changes in the energy cost of goods and service production in the Japanese economy in the decade 1975-85. It develops an input-output scheme which explicitly and exhaustively decomposes changes in a sector`s embodied energy intensity into three causative components: the effect of changes in direct energy efficiency, the effect of fuel substitution, and the effect of changes in non-energy inputs. The application of this model to the Japanese experience found that during the 1975-85 period Japan`s energy conservation efforts moved from an initial emphasis on improving direct energy input efficiency towards a stage of reducing the indirect energy requirements by shifting away from energy intensive inputs. Chemical sectors and metal product sectors led in energy cost reduction in the Japanese economy.

Date: 1995
Note: Received: March 1994 / Accepted: March 1995
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