Analysis of energy use efficiency in Japanese factories:Industry agglomeration effect for energy efficiency

Kenta Tanaka and Shunsuke Managi

No SDES-2017-3, Working Papers from Kochi University of Technology, School of Economics and Management

Abstract: Improving energy efficiency is the one of the best environmental/resource policy. Previous studies have measured energy efficiency in the industrial sector. We further contribute understanding what factors affect energy efficiency changes. This study measures energy efficiency based on plant level data in the Japan'paper/pulp industry and cement industry as energy intensive sectors. We then reveal the relationship between industry agglomeration effect and energy efficiency of each factory. Our results show several important findings. First, energy efficiency has improved in recent years in the paper and pulp industry as well as the cement industry. However, the factors for improvement of energy efficiency differ between each industry. Second, industry agglomeration affects energy efficiency. In the paper and pulp industry, the same industry agglomerations contribute to improvements in the energy efficiency. However the agglomeration effect is negative for energy efficiency in the cement industry.

Keywords: Energy efficiency; Productivity analysis; Industry agglomeration; Data envelopment analysis (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017-05, Revised 2017-05
New Economics Papers: this item is included in nep-eff, nep-ene, nep-geo and nep-reg
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Citations: View citations in EconPapers (1)

Published in SDE Series, May 2017, pages 1-26

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Persistent link: https://EconPapers.repec.org/RePEc:kch:wpaper:sdes-2017-3

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