Sectoral Energy- and Labour-Productivity Convergence

Abstract

Abstract. This paper empirically investigates the development of cross-country differences in energy-and labour productivity. The analysis is performed at a detailed sectoral level for 14 OECD countries, covering the period 1970-1997. A r-convergence analysis reveals that the development over time of the cross-country variation in productivity performance differs across sectors as well as across different levels of aggregation. Both patterns of convergence as well as divergence are found. Cross-country variation of productivity levels is typically larger for energy than for labour. A b-convergence analysis provides support for the hypothesis that in most sectors lagging countries tend to catch up with technological leaders, in particular in terms of energy productivity. Moreover, the results show that convergence is conditional, meaning that productivity levels converge to country-specific steady states. Energy prices and wages are shown to positively affect energy-and labour-productivity growth, respectively. We also find evidence for the importance of economies of scale, whereas the investment share, openness and specialization play only a modest role in explaining cross-country variation in energy-and labour-productivity growth.

Energy efficiency convergence across countries in the context of China’s Belt and Road initiative

“…Applying various convergence assessment techniques with consideration given to spatial effects, this research projects how the BR initiative may affect cross-country EE convergence by examining the impact of trade and regional cooperation on EE convergence. Past studies find that trade is important in explaining the process of EE convergence [10,11]. In Europe, for example, trade -especially the knowledge spillover that it facilitates-advances the EE convergence among European Union (EU) countries [12].…”

Structural Change and U.S. Energy Use: Recent Patterns

“…The econometric results reported by Metcalf (2008) and Sue Wing (2008) are an important start in this direction. So, too, are Mulder and de Groot's (2007)'s efforts to place the energy productivity trends in the context of the productivity for other inputs like labor. The ability to discern input-substitution responses from multi-productivity improvements is important for understanding the cost-effectiveness of energy-saving policies as well as the future demand for energy.…”

Sustainable Resource Use and Economic Dynamics

“…The paper by Cunha-e-Sa´and Reis (2006) analyses a discrete jump in technology towards cleaner production. The empirics of gradual improvement and international convergence in aggregate energy efficiency is studied in the paper by Mulder and De Groot (2006). Finally, the paper by Noailly, Van den Bergh, and Withagen (2006) focuses on local communities and how social norms with respect to resource use evolve there.…”

“…Poor countries not only have relatively little capital (and hence high capital productivity Y/K and high pollution intensity R/Y), but also relatively low technology levels A, which gives scope for imitation and absorption of foreign technologies, relatively fast growth in A and hence relatively fast reductions in pollution intensities. Mulder and De Groot (2006) test the convergence hypothesis for pollution intensities within a production function framework, assuming energy is the polluting input. In doing so, they compare their results with convergence in labour productivity.…”