 The Causality Link between Energy Prices, Technology and Energy IntensityMarie Bessec and Sophie Méritet Chapter 6 in The Econometrics of Energy Systems, 2007, pp 121-145 from Palgrave Macmillan Abstract: Abstract This chapter deals with a field of renewed interest in energy economics: the relationship between energy prices and energy intensity, which is measured by the ratio of final energy consumption to total output (GDP).1 For years, economic papers have been studying energy intensity through the decomposition of the energy demand (Wing and Eckaus, 2004, and Liu, 2005). The link between energy prices and energy intensity has not really been analysed and is nowhere nearly as well established as other relations. A third variable, technological progress, may interfere in this relation. In a first analysis, it appears that technological changes can be stimulated by energy price increases and more efficient equipment reduces the energy demand. At the same time, an increase of energy demand is possible through a change in habits of consumption (changes in energy services, or energy use, and so forth). The causality link is complicated by this variable technology and its effects on energy consumption. Keywords: Energy Intensity; Unit Root Test; Energy Price; Rebound Effect; Augmented Dickey Fuller (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62631-7_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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