Energy efficiency and economic growth: A retrospective CGE analysis for Canada from 2002 to 2012

Bataille, Chris; Melton, Noel

doi:10.1016/j.eneco.2017.03.008

Cited by 91 publications

(34 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Despite being theoretically preferable [13,14], current economy-wide models do not explicitly include thermodynamic (energy conversion) efficiency. Instead, they rely on broader proxies based on the anticipated effects of energy efficiency, such as price and technical progress effects [15][16][17], or intended energy reductions [18]. Therefore, the view of thermodynamic efficiency's role as being a key 'engine of economic growth' is received wisdom, rather than empirically established fact.…”

Section: Introductionmentioning

confidence: 99%

Thermodynamic Efficiency Gains and their Role as a Key ‘Engine of Economic Growth’

et al. 2018

View full text Add to dashboard Cite

Increasing energy efficiency is commonly viewed as providing a key stimulus to economic growth, through investment in efficient technologies, reducing energy use and costs, enabling productivity gains, and generating jobs. However, this view is received wisdom, as empirical validation has remained elusive. A central problem is that current energy-economy models are not thermodynamically consistent, since they do not include the transformation of energy in physical terms from primary to end-use stages. In response, we develop the UK MAcroeconometric Resource COnsumption (MARCO-UK) model, the first econometric economy-wide model to explicitly include thermodynamic efficiency and end energy use (energy services). We find gains in thermodynamic efficiency are a key ‘engine of economic growth’, contributing 25% of the increases to gross domestic product (GDP) in the UK over the period of 1971–2013. This confirms an underrecognised role for energy in enabling economic growth. We attribute most of the thermodynamic efficiency gains to endogenised technical change. We also provide new insights into how the ‘efficiency-led growth engine’ mechanism works in the whole economy. Our results imply a slowdown in thermodynamic efficiency gains will constrain economic growth, whilst future energy-GDP decoupling will be harder to achieve than we suppose. This confirms the imperative for economic models to become thermodynamically consistent.

show abstract

Section: Introductionmentioning

confidence: 99%

Thermodynamic Efficiency Gains and their Role as a Key ‘Engine of Economic Growth’

et al. 2018

View full text Add to dashboard Cite

show abstract

“…They find a positive impact, albeit heterogeneous across industrial sectors. Montalbano and Nenci (2019) Bataille and Melton (2017) is: "Energy efficiency causes a drop in energy demand resulting in a small transition of investment away from energy producing sectors which is offset by a larger increase in overall investment and activity in the rest of the economy" (p. 124). EE improvements are modelled on assumptions and not on observed EE improvements as in the present study.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, aside from only capturing the reductions in demands for energy an EE measure/programme may generate, an IO model can estimate the indirect effects of that reduction on all other sectors of the economy. By using a CGE model,Bataille and Melton (2017) estimate the impact of EE improvements on Canadian GDP, employment, employment structure and welfare from 2002 to 2012.…”

mentioning

confidence: 99%

The Impact of Industrial Energy Efficiency on Economic and Social Indicators

et al. 2020

View full text Add to dashboard Cite

Inclusive and sustainable industrial development implies environmental friendly industrial growth with positive implications for social targets such as employment generation. One of the most important options available to policymakers for reducing CO2 emissions is industrial energy efficiency, which is particularly relevant for the discussion on green industrialization. Despite this intuitive concept, the economics measurement toolkit still lacks a methodological framework to analyse the extent to which energy efficiency interventions can generate simultaneous economic, environmental and employment-related improvements to boost inclusive and sustainable industrial development. This study fills this gap by introducing an original approach based on input-output tables to estimate the impact of improvements in industrial energy efficiency on value added, employment and energy savings among industries in the Republic of North Macedonia. The results show that triple dividends are possible in terms of inclusive and sustainable industrial development. Whereas a positive impact on employment is found in every scenario, a positive outcome in terms of value added essentially depends on the country's capacity to produce goods that accommodate firms' increasing demand from their use of energy cost savings.

show abstract

“…Capros et al [22] focused on the macroeconomic and sector-level effects induced by changes in electricity and gas prices in the EU by means of a CGE model. Bataille and Melton [23] applied a CGE model to estimate the impacts of energy efficiency improvements in Canada by considering indicators related to GDP, employment, economic structure for the period of 2002-2012. Melnikov et al [24] applied the dynamic CGE model to appraise the effects of carbon taxes on household consumption and carbon emissions.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model

et al. 2019

View full text Add to dashboard Cite

China’s electricity industry has been undergoing a process of regulatory reform. This study aims to analyse the impact of liberalization on the electricity market assuming different degrees of scope of the reforms by applying a computable general equilibrium (CGE) model. In this paper, we consider the three sub-sectors of the electricity industry, namely generation, transmission and distribution. We assume that the reform will phase out the entry barriers on the generation side and allow for competition on the distribution side, while keeping the transmission side under regulation. The results showed that the reform could enhance efficiency in the electricity sector and reduce energy prices for households. Introduction of a complete competition model would decrease welfare by 5.394 billion yuan, if contrasted to a limited competition model. The composite energy price would decline under both scenarios, whereas the quantity of energy consumed by the households would go up. This research, thus, contributes to literature on the economic effects of China’s electric power market reform, and can be used as a case study to support policy decisions for the decision-makers.

show abstract

Energy efficiency and economic growth: A retrospective CGE analysis for Canada from 2002 to 2012

Cited by 91 publications

References 41 publications

Thermodynamic Efficiency Gains and their Role as a Key ‘Engine of Economic Growth’

Thermodynamic Efficiency Gains and their Role as a Key ‘Engine of Economic Growth’

The Impact of Industrial Energy Efficiency on Economic and Social Indicators

Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model

Contact Info

Product

Resources

About