International Specialization, Structural Change and the Evolution of Manufacturing Energy Intensity in OECD Countries

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We present new evidence that changes in sector structure explain a considerable and increasing part of Manufacturing energy intensity trends across 19 OECD countries. We show that cross-country convergence of Manufacturing energy intensity levels is caused by efficiency improvements in lagging countries, while undermined by increasing international differences in sector structure. Particularly, we find that efficiency-driven catching-up processes only began to dominate the diverging impact of structural changes after 1995, reversing gradual cross-country divergence of Manufacturing energy intensity levels into rapid convergence. Subsequently, we link sector structure dynamics to changing global production patterns under influence of international trade and specialization. We conclude that increasing trade and market integration helped reducing energy productivity gaps across countries, despite the contribution of increasing specialization to growing cross-country variation in sector structure. These trends are mainly driven by energy-intensive sectors, while various countries specialize in sectors for which they do not have a comparative energy productivity advantage.
LanguageEnglish
Pages111-136
JournalEnergy Journal
Volume36
Issue number3
DOIs
StatePublished - 2015

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Productivity
International trade
Structural change
Manufacturing
Energy intensity
International specialisation
OECD countries
Energy productivity
Productivity gap
Divergence
Energy
Trade integration
Market integration
Catching-up

Cite this

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title = "International Specialization, Structural Change and the Evolution of Manufacturing Energy Intensity in OECD Countries",
abstract = "We present new evidence that changes in sector structure explain a considerable and increasing part of Manufacturing energy intensity trends across 19 OECD countries. We show that cross-country convergence of Manufacturing energy intensity levels is caused by efficiency improvements in lagging countries, while undermined by increasing international differences in sector structure. Particularly, we find that efficiency-driven catching-up processes only began to dominate the diverging impact of structural changes after 1995, reversing gradual cross-country divergence of Manufacturing energy intensity levels into rapid convergence. Subsequently, we link sector structure dynamics to changing global production patterns under influence of international trade and specialization. We conclude that increasing trade and market integration helped reducing energy productivity gaps across countries, despite the contribution of increasing specialization to growing cross-country variation in sector structure. These trends are mainly driven by energy-intensive sectors, while various countries specialize in sectors for which they do not have a comparative energy productivity advantage.",
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International Specialization, Structural Change and the Evolution of Manufacturing Energy Intensity in OECD Countries. / Mulder, P.

In: Energy Journal, Vol. 36, No. 3, 2015, p. 111-136.

Research output: Contribution to JournalArticleAcademicpeer-review

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AB - We present new evidence that changes in sector structure explain a considerable and increasing part of Manufacturing energy intensity trends across 19 OECD countries. We show that cross-country convergence of Manufacturing energy intensity levels is caused by efficiency improvements in lagging countries, while undermined by increasing international differences in sector structure. Particularly, we find that efficiency-driven catching-up processes only began to dominate the diverging impact of structural changes after 1995, reversing gradual cross-country divergence of Manufacturing energy intensity levels into rapid convergence. Subsequently, we link sector structure dynamics to changing global production patterns under influence of international trade and specialization. We conclude that increasing trade and market integration helped reducing energy productivity gaps across countries, despite the contribution of increasing specialization to growing cross-country variation in sector structure. These trends are mainly driven by energy-intensive sectors, while various countries specialize in sectors for which they do not have a comparative energy productivity advantage.

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