Technology Adoption and Aggregate Energy Efficiency

Improved technology is often cited as a means to alter the otherwise difficult trade-off between the economic burden of regulation and environmental damage. Focusing on energy-saving technologies that mitigate the threat of climate change, we find that both energy prices and financial health influence technology adoption among a sample of industrial plants in four heavily polluting sectors. Based on a model linking technology adoption to growth in aggregate efficiency, we estimate that a doubling of energy prices, after raising the growth rate to 2.1%, would require slightly more than 50 years to generate a 50% improvement in aggregate efficiency relative to the baseline forecast.

Issue Date:
Publication Type:
Working or Discussion Paper
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Total Pages:
JEL Codes:
O31; O38; Q43; Q48
Series Statement:
Discussion Paper 02-52

 Record created 2017-04-01, last modified 2018-01-22

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