Productivity and misallocation of energy resources: Evidence from Korea’s manufacturing Sector

Choi, Bong-Seok

doi:10.1016/j.reseneeco.2020.101184

Cited by 23 publications

(10 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The oil fields in low-cost, OPEC, countries have very large reserves and are depleted relatively slowly: in 2014 Saudi Arabia's active fields had 17 percent of global recoverable reserves and were being depleted at close to half the speed of the mean non-OPEC field. 9 This implies production being diverted toward high-cost productive units, while low-cost productive units were being utilized at comparatively lower rates. With discounting, this results in a welfare loss arising from misallocation.…”

Section: B Application To Global Oil Extractionmentioning

confidence: 99%

“…This heterogeneity has proved to be key in predicting the impact of competition on many outcomes, such as the effect of trade or of a new technology on individual producers, and industry-wide performance. SeeOlley and Pakes (1996);Melitz (2003);Syverson (2004);Goldberg et al (2010);Holmes and Schmitz (2010);Edmond, Midrigan, and Xu (2015);Atkeson and Burstein (2010);De Loecker (2011);Collard-Wexler and De Loecker (2015); andDe Loecker et al (2016) 9. OPEC had 50 percent of reserves and were being depleted at a slower rate than in the rest of the world.…”

mentioning

confidence: 99%

See 1 more Smart Citation

(Mis)Allocation, Market Power, and Global Oil Extraction

Asker

Collard-Wexler

Loecker

2019

American Economic Review

View full text Add to dashboard Cite

We propose an approach to measuring the misallocation of production in a market that compares actual industry cost curves to undistorted (counterfactual ) supply curves. As compared to traditional, TFPR-based, misallocation measures, this approach leverages cost data, such that results are readily mapped to welfare metrics. As an application, we analyze global crude oil extraction and quantify the extent of misallocation therein, together with the proportion attributable to market power. From 1970 to 2014, we find substantial misallocation, in the order of US$744 billion, 14.1 percent to 21.9 percent of which is attributable to market power. (JEL D24, F23, L13, L71, Q35)

show abstract

Section: B Application To Global Oil Extractionmentioning

confidence: 99%

mentioning

confidence: 99%

(Mis)Allocation, Market Power, and Global Oil Extraction

Asker

Collard-Wexler

Loecker

2019

American Economic Review

View full text Add to dashboard Cite

show abstract

“…The distortion of fossil (coal, oil, and natural gas) energy prices had a negative impact on the efficiency of the green economy [7]. In South Korea, Bongseok [8] pointed out that EPD in the manufacturing industry led to a reduction in the market allocation efficiency. At the same time, the existence of price distortion is not conducive to economic development.…”

Section: Measurement Of Energy Price Distortionsmentioning

confidence: 99%

The Influence of Energy Price Distortion on Region Energy Efficiency in China’s Energy-Intensive Industries from the Perspectives of Urban Heterogeneity

Wang

Liang

et al. 2021

Sustainability

View full text Add to dashboard Cite

As typical representatives of China’s industrial sectors, energy intensive industries are the focus of energy conservation. This study constructs a trans-log production function and stochastic frontier analysis model to analyze the impact of energy price distortion on total factor energy efficiency in energy intensive industries on the city level. The results reveal that the phenomenon of energy price distortion existed in all cities from 2003 to 2019, with an average degree of −0.175; and the total factor energy efficiency in China’s energy intensive sectors showed an upward trend, with an average efficiency of 0.729. Further deep analysis of affecting mechanisms concluded that the price distortion showed a significant restraining effect on improving energy efficiency, while the improvement of urban agglomeration systems had an opposite effect. In addition, energy consumption structure, foreign trade, and infrastructure construction are positively correlated with energy efficiency. Therefore, promoting the market-oriented reform of China’s energy market is of great significance to improve city energy efficiency and build a resource-conserving society.

show abstract

“…Although the literature has analyzed the impact of regional integration on energy efficiency and carbon emissions, there is currently no research on the potential impact of regional integration on the regional energy efficiency gap. Finally, the literature has demonstrated that government intervention reduces the efficiency of resource allocation and restricts the circulation of energy-related technologies within regions in China, which is critical in the analysis of the regional energy efficiency gap (Fu, 2018;Choi, 2020). Nevertheless, how it affects the impact of the regional energy efficiency gap brought by regional integration remains unclear.…”

Section: Introductionmentioning

confidence: 99%