[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v69y2010i7p1471-1478.html
   My bibliography  Save this article

Energy quality

Author

Listed:
  • Stern, David I.
Abstract
This paper develops economic definitions of energy quality for individual fuels and energy aggregates. There are use- and exchange-value concepts, as well as marginal and total measures, of energy quality. A factor augmentation or quality coefficients approach corresponds to the use-value definition while indicators based on distance functions and relative prices are exchange-value based definitions. These indicators are identical when the elasticity of substitution between fuels is infinity but diverge or cannot be computed for other interfuel elasticities of substitution. When the elasticity of substitution is zero only the quality coefficients approach is defined. I also show that 1) the ratio of an energy volume index to aggregate joules cannot be considered a complete indicator of aggregate energy quality as it does not account for quality changes in the component fuels 2) demand curve integrals do not provide information on relative use-values or fuel qualities when the elasticity of substitution is unity or less.

Suggested Citation

  • Stern, David I., 2010. "Energy quality," Ecological Economics, Elsevier, vol. 69(7), pages 1471-1478, May.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1471-1478
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(10)00042-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:bla:scotjp:v:45:y:1998:i:2:p:188-97 is not listed on IDEAS
    2. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    3. David I. Stern, 2012. "Interfuel Substitution: A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 307-331, April.
    4. Tallman, Ellis W. & Wang, Ping, 1994. "Human capital and endogenous growth evidence from Taiwan," Journal of Monetary Economics, Elsevier, vol. 34(1), pages 101-124, August.
    5. Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
    6. Erik Mellander, 2000. "The Multi-Dimensional Nature of Labor Demand and Skill-Biased Technical Change," Econometric Society World Congress 2000 Contributed Papers 0671, Econometric Society.
    7. Cleveland, Cutler J. & Kaufmann, Robert K. & Stern, David I., 2000. "Aggregation and the role of energy in the economy," Ecological Economics, Elsevier, vol. 32(2), pages 301-317, February.
    8. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    9. Enflo, Kerstin & Kander, Astrid & Schön, Lennart, 2009. "Electrification and energy productivity," Ecological Economics, Elsevier, vol. 68(11), pages 2808-2817, September.
    10. Eugenia Kazamaki Ottersten & Thomas Lindh Mellander, 1999. "Evaluating firm training, effects on performance and labour demand," Applied Economics Letters, Taylor & Francis Journals, vol. 6(7), pages 431-437.
    11. John M. Abowd & Françis Kramarz & Antoine Moreau, 1996. "Product Quality and Worker Quality," Annals of Economics and Statistics, GENES, issue 41-42, pages 299-322.
    12. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 154-193.
    13. Dimitrios A. Giannias, 1998. "Labour Quality and Wage Differentials," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 188-197, May.
    14. Jorgenson, Dale W. & Ho, Mun S. & Stiroh, Kevin J., 2003. "Lessons from the US growth resurgence," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 453-470, July.
    15. Daron Acemoglu, 2003. "Labor- And Capital-Augmenting Technical Change," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 1-37, March.
    16. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
    17. Stern, David I., 1993. "Energy and economic growth in the USA : A multivariate approach," Energy Economics, Elsevier, vol. 15(2), pages 137-150, April.
    18. Stern, David I., 1999. "Use value, exchange value, and resource scarcity," Energy Policy, Elsevier, vol. 27(8), pages 469-476, August.
    19. repec:adr:anecst:y:1996:i:41-42:p:13 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 3. Energy Intensity is not Correlated with GDP per Capita
      by David Stern in Stochastic Trend on 2011-11-04 12:09:00
    2. Annual Review 2020
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2020-12-19 07:18:00
    3. Typo in Directed Technical Change and the British Industrial Revolution
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2022-01-25 22:58:00
    4. Energy Quality
      by David Stern in Stochastic Trend on 2009-08-19 17:43:00
    5. Energy Quality
      by David Stern in Stochastic Trend on 2010-02-01 03:32:00
    6. Energy Mix and Energy Intensity
      by David Stern in Stochastic Trend on 2010-04-17 09:49:00
    7. The Role of Energy in the Industrial Revolution and Modern Economic Growth
      by David Stern in Stochastic Trend on 2011-04-23 11:02:00

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liao, Hua & Wei, Yi-Ming, 2012. "Will the aggregation approach affect energy efficiency performance assessment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4537-4542.
    2. Macías, Arturo & Matilla-García, Mariano, 2015. "Net energy analysis in a Ramsey–Hotelling growth model," Energy Policy, Elsevier, vol. 86(C), pages 562-573.
    3. Jack Gregory & David I. Stern, 2012. "Fuel Choices in Rural Maharashtra," CCEP Working Papers 1207, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    4. Stern, David I. & Jotzo, Frank, 2010. "How ambitious are China and India's emissions intensity targets?," Energy Policy, Elsevier, vol. 38(11), pages 6776-6783, November.
    5. Kander, Astrid & Stern, David I., 2014. "Economic growth and the transition from traditional to modern energy in Sweden," Energy Economics, Elsevier, vol. 46(C), pages 56-65.
    6. Stern, David I. & Enflo, Kerstin, 2013. "Causality between energy and output in the long-run," Energy Economics, Elsevier, vol. 39(C), pages 135-146.
    7. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.
    8. Richard Green and Nicholas Vasilakos, 2012. "Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    9. King, Carey W., 2014. "Matrix method for comparing system and individual energy return ratios when considering an energy transition," Energy, Elsevier, vol. 72(C), pages 254-265.
    10. Kander, Astrid & Warde, Paul & Teives Henriques, Sofia & Nielsen, Hana & Kulionis, Viktoras & Hagen, Sven, 2017. "International Trade and Energy Intensity During European Industrialization, 1870–1935," Ecological Economics, Elsevier, vol. 139(C), pages 33-44.
    11. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    12. Ruta Gentvilaite & Astrid Kander & Paul Warde, 2014. "The Role of Energy Quality in Shaping Long-Term Energy Intensity in Europe," Energies, MDPI, vol. 8(1), pages 1-21, December.
    13. Lee, Lisa Yu-Ting, 2013. "Household energy mix in Uganda," Energy Economics, Elsevier, vol. 39(C), pages 252-261.
    14. Matthew K. Heun & João Santos & Paul E. Brockway & Randall Pruim & Tiago Domingos & Marco Sakai, 2017. "From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions," Energies, MDPI, vol. 10(2), pages 1-44, February.
    15. Serrenho, André Cabrera & Warr, Benjamin & Sousa, Tânia & Ayres, Robert U. & Domingos, Tiago, 2016. "Structure and dynamics of useful work along the agriculture-industry-services transition: Portugal from 1856 to 2009," Structural Change and Economic Dynamics, Elsevier, vol. 36(C), pages 1-21.
    16. Elena Ketteni & Theofanis Mamuneas & Panos Pashardes, 2013. "ICT and Energy Use: Patterns of Substitutability and Complementarity in Production," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 63-86, June.
    17. Csereklyei, Zsuzsanna & Thurner, Paul W. & Langer, Johannes & Küchenhoff, Helmut, 2017. "Energy paths in the European Union: A model-based clustering approach," Energy Economics, Elsevier, vol. 65(C), pages 442-457.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul E. Brockway & Matthew K. Heun & João Santos & John R. Barrett, 2017. "Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation," Energies, MDPI, vol. 10(2), pages 1-23, February.
    2. David I. Stern and Astrid Kander, 2012. "The Role of Energy in the Industrial Revolution and Modern Economic Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    3. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    4. Sorrell, Steve, 2009. "Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency," Energy Policy, Elsevier, vol. 37(4), pages 1456-1469, April.
    5. Yasmina Reem Limam & Stephen M. Miller, 2004. "Explaining Economic Growth: Factor Accumulation, Total Factor Productivity Growth, and Production Efficiency Improvement," Working papers 2004-20, University of Connecticut, Department of Economics.
    6. Jean Luc de Meulemeester & Claude Diebolt, 2007. "Education et croissance : quel lien, pour quelle politique ?," Working Papers 07-08, Association Française de Cliométrie (AFC).
    7. Antonopoulos, Christos & Sakellaris, Plutarchos, 2009. "The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework," Information Economics and Policy, Elsevier, vol. 21(3), pages 171-191, August.
    8. Richard Green & Nicholas Vasilakos, 2012. "Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export?," The Energy Journal, , vol. 33(3), pages 1-22, July.
    9. Yao, Yao, 2016. "Higher education expansion, economic reform and labor productivity," Working Paper Series 19506, Victoria University of Wellington, School of Economics and Finance.
    10. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2016. "Does a small cost share reflect a negligible role for energy in economic production? Testing for aggregate production functions including capital, labor, and useful exergy through a cointegration-base," MPRA Paper 70850, University Library of Munich, Germany.
    11. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    12. Murphy, David J. & Hall, Charles A.S., 2011. "Adjusting the economy to the new energy realities of the second half of the age of oil," Ecological Modelling, Elsevier, vol. 223(1), pages 67-71.
    13. Matthew K. Heun & João Santos & Paul E. Brockway & Randall Pruim & Tiago Domingos & Marco Sakai, 2017. "From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions," Energies, MDPI, vol. 10(2), pages 1-44, February.
    14. Carey W. King, 2015. "Comparing World Economic and Net Energy Metrics, Part 3: Macroeconomic Historical and Future Perspectives," Energies, MDPI, vol. 8(11), pages 1-24, November.
    15. Charlotte Le Chapelain, 2013. "Cliométrie et Capital humain," Working Papers 01-13, Association Française de Cliométrie (AFC).
    16. Santos, João & Borges, Afonso & Domingos, Tiago, 2020. "Exploring the links between total factor productivity, final-to-useful exergy efficiency, and economic growth: Case study Portugal 1960-2014," MPRA Paper 100214, University Library of Munich, Germany.
    17. Yao, Yao, 2016. "Higher education expansion, economic reform and labor productivity," Working Paper Series 5357, Victoria University of Wellington, School of Economics and Finance.
    18. Yao, Yao, 2019. "Does higher education expansion enhance productivity?," Journal of Macroeconomics, Elsevier, vol. 59(C), pages 169-194.
    19. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2018. "Useful Exergy Is Key in Obtaining Plausible Aggregate Production Functions and Recognizing the Role of Energy in Economic Growth: Portugal 1960–2009," Ecological Economics, Elsevier, vol. 148(C), pages 103-120.
    20. Tung Liu & Kui-Wai Li, 2008. "Revisiting Solow’s Decomposition of Economic and Productivity Growth," Working Papers 200805, Ball State University, Department of Economics, revised Dec 2008.

    More about this item

    Keywords

    Energy Quality Productivity;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1471-1478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.