by MonteQuest » Tue 01 May 2007, 15:58:23
$this->bbcode_second_pass_quote('Loki', ' ')Bullshit. I've asked you several times for empirical evidence from a peer-reviewed journal.
$this->bbcode_second_pass_quote('', '[')b]Empirical Evidence
A number of studies have been done to determine the impact of improved efficiency on energy use. In the USA a major study for energy processes over the period 1880-1970 was done by Sam Schurr (1960, 1983, 1990), and for OECD countries on a sectorial level for the period 1970-1995 by Lee Schipper and his colleagues (Schipper 1987, 1992, 1997; Howarth et al 1991, Greening 1997), but not (to my knowledge) on a microeconomic scale for the UK.
The main problem is in measuring energy efficiency. Its two indicators, energy intensity (energy use per unit output) and the energy coefficient (the output elasticity of energy consumption), can give false signals. Schurr maintained that allying capital and labour inputs with new injections of energy into economic systems can increase the productivity of both capital and labour. This results in a fall in energy intensity due to a larger denominator in the shape of higher economic output. This can deliver a false message when in fact there have been no change in the efficiency of conversion of fuel to useful heat and work.
Nevertheless it is accepted that there is a steady long term trend in efficiency improvement in the economy, due to the 'vintage effect'. That is the tendency for new plant and appliances to be more efficient than those they replace. Thus it is limited by the rate of stock turnover and the rate of additions to stock, generally due to economic growth.
Schurr's empirical findings (1982) was that for the period 1920-1953 new technologies, often using electricity, not only raised the productivity of labour and capital but also improved energy productivity - that is reduced energy intensity. Energy efficiency improved at the same time as energy consumption rose and economic output increased. But total output grew at a faster rate than energy intensity declined, so total energy consumption increased. It was only in exceptional circumstances, such as the 1979 oil price hike, that energy productivity exceed multifactor productivity - which actually fell at that time due to economic recession.
Schurr (1985) also found that energy efficiency increased more rapidly at times of low energy prices, and Brookes (1993) said this was because technological progress of all types is likely to flourish when the availability of an important resource like energy is high enough (and price is thus low) to stimulate economic growth.