Lundgren, Tommy
- Department of Forest Economics, Swedish University of Agricultural Sciences
- Umeå University
Research article2016Peer reviewed
Lundgren, Tommy; Marklund, Per-Olov; Zhang, Shanshan
This paper estimates firm level energy demand and energy efficiency for 14 sectors in Swedish manufacturing using stochastic frontier analysis (SFA). We derive sector level energy demand frontiers that account for firm specific heterogeneity. Results show that there is potential to improve energy efficiency for fuel and electricity use in all sectors; energy intensity is not an appropriate proxy for energy efficiency; the EU ETS had a modest or no effect on Swedish firms' efficient use of energy during the first trading phase and the beginning of the second, indicating that the carbon permit price was too low to generate the necessary incentives for energy efficiency investments. (C) 2016 Elsevier B.V. All rights reserved.
Energy demand; Energy efficiency; Manufacturing industry; Stochastic frontier analysis; True random effects
Resource and Energy Economics
2016, Volume: 43, pages: 130-152 Publisher: ELSEVIER SCIENCE BV
SDG7 Affordable and clean energy
Business Administration
DOI: https://doi.org/10.1016/j.reseneeco.2016.01.003
https://res.slu.se/id/publ/83119