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Energy Efficiency in Swedish Industry: a Stochastic Frontier Approach
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM).
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
2014 (English)Report (Other academic)
Abstract [en]

This paper estimates firm level energy efficiency and its determinants in 14 sectors of Swedish manufacturing by using stochastic frontier analysis (SFA). We derive energy demand frontiers both from cost minimizing and profit maximizing perspectives. To account for firms’ heterogeneity, Greene’s true random effects model is adopted. Results show that, from both firm behavior perspectives, there is room to improve energy efficiency in all sectors of Swedish manufacturing. The EU ETS seem to have had a moderate or no effect on Swedish firms’ efficient use of energy. Moreover, we found that energy intensity or energy productivity (energy use over production value) is not an appropriate proxy for energy efficiency.

Place, publisher, year, edition, pages
2014.
Series
CERE working paper
Keyword [en]
energy demand, energy efficiency, manufacturing, stochastic frontier analysis, true random effects
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-101965OAI: oai:DiVA.org:umu-101965DiVA: diva2:805943
Available from: 2015-04-17 Created: 2015-04-17 Last updated: 2015-09-25Bibliographically approved

Open Access in DiVA

fulltext(1486 kB)131 downloads
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http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2573081_code1431493.pdf?abstractid=2573081&mirid=3

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Lundgren, TommyMarklund, Per-Olovzhang, shanshan
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf