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The effect of ESCO s on carbon dioxide emissions

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  • WenShwo Fang
  • Stephen M. Miller

Abstract

Proponents of energy service companies ( ESCO s) argue that these firms provide a crucial instrument for delivering improved energy efficiency in public and private sectors, thus contributing to carbon dioxide (CO 2 ) emission reduction around the world. Do ESCO s reduce CO 2 emissions? To answer this question, we develop an estimating equation, which approximates the IPAT model, from a simple model of production. We estimate a dynamic panel of 129 countries over the period 1980--2007 to show that the ESCO s effectively reduce CO 2 emissions and that this effect increases over time. These findings also prove robust to the inclusion of a set of control variables, different dates of the first ESCO and the Kyoto Protocol. Finally, we discuss energy policy implications.

Suggested Citation

  • WenShwo Fang & Stephen M. Miller, 2013. "The effect of ESCO s on carbon dioxide emissions," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4796-4804, December.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4796-4804
    DOI: 10.1080/00036846.2013.804172
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    3. Olaronke T. ONANUGA, 2017. "Elasticity of CO2 emissions with Respect to Income, Population, and Energy Use: Time Series Evidence from African Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 651-670, December.
    4. Hasanov, Fakhri J. & Bulut, Cihan & Suleymanov, Elchin, 2016. "Do population age groups matter in the energy use of the oil-exporting countries?," Economic Modelling, Elsevier, vol. 54(C), pages 82-99.

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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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