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Industry-mix effects at different levels of sectoral disaggregation: a decomposition of inter-country differences in energy costs

Author

Listed:
  • Wolfgang Koller

    (Institute for Industrial Research)

  • Andreas Eder

    (Institute for Industrial Research
    University of Natural Resources and Life Sciences)

  • Bernhard Mahlberg

    (Institute for Industrial Research
    Vienna University of Economics and Business)

Abstract

This article develops a decomposition of inter-country differences of unit energy costs (UEC) of the manufacturing sector. UEC are decomposed into a structural (industry-mix) component and an autonomous component that captures all other effects like, e.g., differences in energy efficiency and energy prices. Based on NACE 3-digit level data from Eurostat’s Structural Business Statistics the industry-mix component can be quantified on different levels of sectoral disaggregation. The results show that not only industry-mix effects on the conventional (typically NACE 2-digit) but also those measurable at higher levels of disaggregation are relevant for comparison of energy costs across countries.

Suggested Citation

  • Wolfgang Koller & Andreas Eder & Bernhard Mahlberg, 2023. "Industry-mix effects at different levels of sectoral disaggregation: a decomposition of inter-country differences in energy costs," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(4), pages 883-897, November.
    • Handle: RePEc:kap:empiri:v:50:y:2023:i:4:d:10.1007_s10663-023-09593-w
    DOI: 10.1007/s10663-023-09593-w
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    References listed on IDEAS

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    More about this item

    Keywords

    Decomposition analysis; Unit energy costs; Structural effect; Industrial composition; Aggregation bias;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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