Working Paper: CEPR ID: DP17628
Authors: Octavio Fernández-Amador; Joseph Francois; Doris Oberdabernig; Patrick Tomberger
Abstract: Understanding the developments of energy efficiency in the context of the global energy network is key to advance energy regulation and fight climate change. We develop a global panel dataset on energy usage accounts based on territorial production, final production and consumption over 1997–2014. We apply structural decomposition analysis to isolate energy efficiency changes and study the effectiveness of the European Union Energy Services Directive [2006/32/EC] on energy efficiency. The effectiveness of the Directive is mixed. The different dynamics found among the European Union members result from differences in the ambition of national energy policies and from the structure of their supply chains. The observed trends towards energy effi- ciency gains and increases in renewable energy shares are not specific to the European Union, but are common among high income countries. Energy policies in high-income countries are less effective for energy footprints. Our findings are indicative of energy leakage. Energy regulation should account for global supply chains.
Keywords: energy usage; energy efficiency; energy footprints; renewable energy; MRIO analysis; structural decomposition analysis; EU Energy Services Directive
JEL Codes: F18; F64; O13; O44; Q40; Q54; Q56
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| national energy policies (Q48) | effectiveness of the EU Energy Services Directive (Q48) |
| supply chain structures (L14) | effectiveness of the EU Energy Services Directive (Q48) |
| energy efficiency gains in the EU (O52) | energy efficiency gains in high-income countries (O57) |
| energy policies in high-income countries (P18) | energy footprints (Q47) |
| EU Energy Services Directive (2006/32/EC) (Q41) | energy efficiency improvements in EU member states (O52) |
| improvements in energy efficiency in EU15 (O52) | improvements in energy efficiency in EEU (Q41) |
| implementation of the directive (D78) | energy efficiency improvements in EU15 (O52) |