Measuring Energy-Saving Technical Change in Japan

Ichiro Fukunaga and Mitsuhiro Osada
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Mitsuhiro Osada: Bank of Japan

No 09-E-5, Bank of Japan Working Paper Series from Bank of Japan

Abstract: In this paper, we estimate time-varying biases of technical change and their effects on productivity using econometric models of aggregate and industry-level technology in Japan. In our aggregate model, the bias of technical change for energy input was energy-saving in the 1980s but gradually switched to energy-using around 2000. We found little evidence that producers switched to energy-saving technical change by the end of 2008 in response to the recent surge in energy prices. As a result, rising energy prices under the energy-using technical change have contributed to a slowdown in TFP growth. Meanwhile, the labor-saving technical change has made large positive contributions to TFP growth and labor productivity growth. In our models of individual industries, the biases of technical change for energy have been small since the 1980s and those for materials have been substantially materials-saving in many industries.

Keywords: Bias of Technical Change; Productivity; Energy (search for similar items in EconPapers)
JEL-codes: E23 O30 (search for similar items in EconPapers)
Date: 2009-11
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:09-e-5

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