Energy intensity: A decomposition and counterfactual exercise for Latin American countries (original) (raw)
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This paper investigates trends in energy intensity over the last 40 years. Based on a sample of 75 countries, it applies the Fisher Ideal Index to decompose the energy intensity into the relative contributions of energy efficiency and economic structure. Then, the determinants of these energy indexes are examined through panel data regression techniques. Special attention is lent to Latin American countries (LAC) by comparing its performance to that of a similar set of countries chosen through the synthetic control method. When analyzed by income level, energy intensity has decreased in a range between 40 and 54 percent in low and medium income countries respectively. Efficiency improvements drive these changes, while the structural effect does not represent a clear source of change. The regression analysis shows that per capita income, petroleum prices, fuel-energy mix, and GDP growth are main determinants of energy intensity and efficiency, while there are no clear correlations with the activity component. In the case of LAC the energy intensity decreased around 20 percent which could be interpreted as an under-performance. However, the counterfactual exercise suggests that LAC has closed the gap with respect to its synthetic control.
Latin American Journal of Economics, 2013
We estimate the elasticity of the long-run relationship between energy consumption and GDP for 10 countries in Latin America from 1971 to 2007. We employ Pedroni's (1999, 2004) panel cointegration test to determine if such a long-run relationship exists. Westerlund's (2006) cointegration test for panel data is used to estimate the slopes of the long-run relationship variables. These findings provide empirical guidance for policies to promote energy conservation and ef ficiency. Cointegration between the two variables is found to exist in both directions. This paper discusses the energy dependence of some countries and describes potential implementation of energy conservation policies in others.
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This article inaugurates the study of the energy-economic growth nexus with a new approach with the introduction of globalisation index, in ten Latin American and the Caribbean countries from 1971-2014. The Autoregressive Distributed Lag (ARDL) and the Granger causality Wald test were used as a methodology. The empirical results pointed to the existence of a bidirectional relationship between economic growth and consumption of renewable energy, a unidirectional relationship from consumption of fossil to economic growth, and a bidirectional relationship between globalisation and consumption of renewable energy. That these results help the local governments develop new policies with the purpose of increases the consumption of renewable energy and reduces environmental degradation while promoting development.
The Energy and Gross Domestic Product Causality Nexus in Latin America 1900-2010
International Journal of Energy Economics and Policy
A better understanding of the relationship between energy consumption and economic growth is important for the less developed regions of the world such as Africa or Latin America, which future might be compromised by the imposition of the transition to a lower carbon economy. Studies on the energy-GDP nexus for Latin America have been few and bounded to short periods. We fill this gap by searching for causal paths between energy and GDP for 20 Latin American countries using a newly compiled dataset spanning the 20 th century. Our main identification strategy is based on super exogeneity, which we complement with Granger tests, Toda and Yamamoto and enrich by controlling for structural breaks and the False Discovery Rate. The results highlight the inexistence of a homogeneous relation between energy and GDP in highly heterogeneous spatial and temporal dimensions, and thus the need to enhance our theoretical understanding of this relation. The policy implication is that designing and implementing energy policies coming from a single methodological approach and based on aggregated results should be avoided.
Renewable and sustainable energy efficiency: An analysis of Latin American countries
Environmental progress & sustainable energy, 2018
The rise in energy consumption is a serious problem in the modern world. Therefore, policies to ensure energy efficiency have become a priority for any nation that is looking to develop its economy. Considering that Latin America has shown rapid economic development and plays an important role in the world economy, the objective of this work was to measure and analyze the renewable energy sources and energy efficiency of the Latin American countries, providing information on benchmark countries. Data envelopment analysis, the slacks-based measure model with variable returns to scale and window analysis were used, and from the slacks provided, the total-factor energy efficiency, the total-factor carbon emissions efficiency, and renewable and sustainable energy efficiency indices were calculated. The inputs used were gross fixed capital formation, labor, and energy consumption; and the outputs used were CO 2 emissions (undesirable output) and gross domestic product (desired output). The results showed that Brazil is the country with the highest RSEE, followed by Venezuela and Uruguay. V
Energy, 2011
This study examines the primary energy consumption and energy-related CO 2 emissions in Argentina, Brazil, Colombia, Mexico and Venezuela during the period 1990e2006. It also reviews important reforms in the energy sector of these countries as well as the promotion of energy efficiency (EE) and renewable energy sources (RES). Using a decomposition analysis, results indicate that even though significant reductions in energy intensity have been achieved in Colombia, Mexico and in a lesser extent in Brazil and Argentina, the reduction of CO 2 emissions in these countries has not been significant due to an increased dependence on fossil fuels in their energy mix. Although the Latin American region has an important experience in the promotion of EE programs and renewable sources, the energy agenda of the examined countries focused mostly on the energy reforms during the analyzed period. The policy review suggests that further governmental support and strong public policies towards a more sustainable energy path are required to encourage a low carbon future in the region. (C. Sheinbaum). 1 281 JI projects in EIT countries have an annual average of 79,283,000 emission reduction units (ERUs), while 2247 CDM registered projects in developing countries have an annual average of 367,410,863 certified emission reductions (CERs).
GDP and environment pressure: The role of energy in Latin America and the Caribbean
Energy Policy, 2011
This paper analyzes the relationship between economic growth and energy consumption for a sample of 21 Latin American and Caribbean countries during the 1970-2007 period. The investigation is made on the bases of the Energy Environmental Kuznets Curve (EEKC) hypothesis, using a panel data analysis. Energy consumption at aggregate level is used as an indicator of human environmental pressure and GDP per capita as an indicator of economic activity. Based in a cointegration approach, our results does not support the existence of a stable long run relationship between the series, rejecting the validity of such hypothesis for the selected sample over the 1970-2007 period.
Spanish sectoral energy intensity developments in international perspective, 1980-2005
2017
This paper consists of two main blocks: the first analyzes the evolution of energy intensity (or energy efficiency) across a broad group of OECD countries for the period 1980-2005 with a high level of sectoral resolution, focusing the analysis on the Spanish economy. This analysis shows two clearly marked trends on the evolution of energy efficiency in the Spanish economy: a strong increase at a faster pace than the OECD average during the subperiod 1980-1995 and a rapid decline during the subperiod 1995-2005. The second block explores the underlying causes that have driven the evolution of energy intensity across the OECD economies and further analyses the evolution of those variables affecting energy efficiency in the Spanish economy. This paper finds evidence of a significant impact of the next variables on energy efficiency: Energy prices, Energy research, development and demonstration, Openness to trade of the country, Average firm size and Initial level of energy efficiency in the country. Turning to the Spanish economy, the low level of energy RD&D, the limited openness to trade resulting from an economic structure strongly based on the Tourism and the Construction sector, the small average size of the industrial companies and the low energy prices explain an important part of the poor performance of energy efficiency after 1992.
CEPAL review
Thi s article analyses the relationship between energy consumption in industry and industrial productivity and the implications of this for sustainable development. To this end, it presents a matrix characterizing economies as: (i) converging or diverging in terms of energy consumption per unit of value added, and (ii) catching up with or falling further behind the productivity level of the international frontier (the United States). On the basis of data from the industrial surveys of four Latin American countries (Brazil, Chile, Colombia and Mexico), it concludes that the region's evident specialization in natural resource-intensive sectors has contributed to a pattern of high energy consumption and slow productivity growth, and that while there is no productive convergence, there is evidence of energy sustainability in three of the four countries analysed. Hugo Altomonte Director, Natural Resources and Infrastructure Division eclac ✒ hugo.altomonte@cepal.org Nelson Correa Rese...