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Is technological change biased toward energy? A multi-sectoral analysis for the French economy

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  • Karanfil, Fatih
  • Yeddir-Tamsamani, Yasser

Abstract

Since the adoption and implementation of new technologies has an important influence on the structure and performance of the economy in both developed and developing countries, many research papers are devoted to the technology-economy nexus. Motivated by the fact that the impact of technical progress on the demand for different production factors may vary depending on the bias of the technological change, in this paper, by estimating a translog cost-share system and using state-space modeling technique, we investigate to what extent the direction of technical change is biased toward energy and away from other factors. By applying this methodology to the French economy for the period 1978-2006 the obtained results suggest that: first, technical change has a non-neutral impact on factor demands; second, capital-saving technical progress is present in the majority of the sectors studied; third, energy demand has increased in all sectors but electricity and gas. These findings may have important policy implications for environmental and energy issues in France.

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  • Karanfil, Fatih & Yeddir-Tamsamani, Yasser, 2010. "Is technological change biased toward energy? A multi-sectoral analysis for the French economy," Energy Policy, Elsevier, vol. 38(4), pages 1842-1850, April.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1842-1850
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    Cited by:

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    2. Zha, Donglan & Kavuri, Anil Savio & Si, Songjian, 2018. "Energy-biased technical change in the Chinese industrial sector with CES production functions," Energy, Elsevier, vol. 148(C), pages 896-903.
    3. Juan Qian & Ruibing Ji, 2022. "Impact of Energy-Biased Technological Progress on Inclusive Green Growth," Sustainability, MDPI, vol. 14(23), pages 1-24, December.
    4. Zhou, Xiaoxiao & Pan, Zixuan & Shahbaz, Muhammad & Song, Malin, 2020. "Directed technological progress driven by diversified industrial structural change," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 112-129.
    5. Wenhan Ren & Jing Ni & Wen Jiao & Yan Li, 2023. "Explore the key factors of sustainable development: A bibliometric and visual analysis of technological progress," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 492-509, February.
    6. Li, Zhen & Wu, Baijun & Wang, Danyang & Tang, Maogang, 2022. "Government mandatory energy-biased technological progress and enterprises' environmental performance: Evidence from a quasi-natural experiment of cleaner production standards in China," Energy Policy, Elsevier, vol. 162(C).
    7. Ming Chen & Lina Song & Xiaobo Zhu & Yanshuo Zhu & Chuanhao Liu, 2023. "Does Green Finance Promote the Green Transformation of China’s Manufacturing Industry?," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    8. Jun Wang & Chengbo Wang & Xuan Wan, 2021. "Trade Liberalization, Energy‐Saving Technological Change And Energy Intensity: Some Empirical Evidence From China," Contemporary Economic Policy, Western Economic Association International, vol. 39(2), pages 365-376, April.
    9. Zha, Donglan & Kavuri, Anil Savio & Si, Songjian, 2017. "Energy biased technology change: Focused on Chinese energy-intensive industries," Applied Energy, Elsevier, vol. 190(C), pages 1081-1089.
    10. Yang, Bo & Liu, Baozhen & Peng, Jiachao & Liu, Xujun, 2022. "The impact of the embedded global value chain position on energy-biased technology progress: Evidence from chinas manufacturing," Technology in Society, Elsevier, vol. 71(C).

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