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Measuring preferences for energy efficiency in ACI and EU nations and uncovering their impacts on energy conservation

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  • Chen, Hong
  • Gangopadhyay, Partha
  • Singh, Baljeet
  • Shankar, Sriram

Abstract

Energy efficiency, commonly interpreted as the ratio of output of performance, service, goods or energy, to input of energy, is of critical importance for reducing dependence on oil, controlling greenhouse gas emissions from fossil-fuel combustion and mitigating environmental damages in order to achieve a sustainable global energy system. In this paper, for the first time to the best of our understanding, we measure the (hidden) preferences for energy efficiency and capture their impacts on energy conservation in a panel of ASEAN countries, China and India (in short, the ACI nations) from 1985 to 2020. We apply the state-space models to estimate country-specific preferences for energy efficiency as a latent variable and then explore their impacts on the demand for renewable energy using an efficient generalised method of moments (GMM) estimator for the panel of chosen countries. We find strong evidence that intensities of preferences for energy efficiency increase the demand for renewable energy in ACI nations. In an extension of our study, we replicate our analysis for leading European Union (EU) nations using clean energy to arrive at interesting comparative insights. We gain further insights into the understanding of how structural breaks can influence the impacts of preferences for energy efficiency on the demand for renewables for ACI nations.

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  • Chen, Hong & Gangopadhyay, Partha & Singh, Baljeet & Shankar, Sriram, 2022. "Measuring preferences for energy efficiency in ACI and EU nations and uncovering their impacts on energy conservation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:rensus:v:156:y:2022:i:c:s1364032121012090
    DOI: 10.1016/j.rser.2021.111944
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    1. Das, Narasingha & Gangopadhyay, Partha & Alghamdi, Thamer & Sarwar, Suleman & Haseeb, Mohammad & Barut, Abdulkadir & Dey, Labani, 2023. "Understanding the role of efficiency in the electricity generation process for promoting human development in India: Findings from the novel multiple threshold nonlinear ARDL modelling," Utilities Policy, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    Preferences for energy efficiency; Renewable energy; Demand for renewable energy; Energy efficiency;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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