Analysis of energy intensity developments in manufacturing sectors in industrialized and developing countries

This paper studies the development of energy intensity over time and its relationship with the sectoral economic development. Three variables are analyzed with respect to their impact on energy intensity; total sectoral economic activity, sectoral gross fixed capital formation and industrial energy prices. Panel analysis was conducted for ten manufacturing industries using pooled data of 39 countries between 1971 and 1996. This study finds that capital formation has the effect of increasing energy intensity and this effect is stronger where sectoral output is larger. The innovative value of this study deals with a large number of countries and describes in detail the manufacturing industries for which empirical evidence is provided. Another focus of this study is on the generation of an industrial energy intensity database which includes estimates of industrial energy prices for different countries. The database includes most of the Organization for Economic Cooperation and Development countries as well as other countries in Asia and Latin America. (C) 2001 Elsevier Science Ltd. All rights reserved.