Trends in Energy Productivity. A Sectoral Cross-country Analysis for the Period 1970-1997

The paper describes the development of energyintensity at a detailed sectoral level for 14 OECD countries for the period 1970-1997 (distinguishing 13 sectors). The analysis is based on a database that merges energy data from IEA Energy Balances, economic data from the OECD International Sectoral Database and constructed energy prices, using IEA data. We document a number of stylised facts focussing on differences and similarities in trends and levels of energy productivity. The stylised facts are confronted with stylised facts on labourand capital productivity. We found that in all countries the average annual growth rate of energy productivity is significantly lower than the growth rate of labour productivity and in contrast to patterns of total factor productivity where the USA is the leading country, the USA performs on average in Manufacturing while in Transport, Services and Agriculture the USA face an energy productivity disadvantage to most other OECD countries. A decomposition analysis reveals for each country to what extent the observed average annual growth rate of energy productivity is due to increasing energy efficiency and which part is due to a structural shift towards less energyintensive activities. In addition, for each country we trace back the observed aggregate figures on energy productivity to developments at the level of individual sectors. A systematic cross-country analysis on σ-convergence shows that in all sectors the dispersion of energy-productivity is larger and less uniform than the dispersion of labour productivity. Finally, we found for most sectors a significant pattern of β-convergence for the period 1970-1995.