Abstract
The US manufacturing sector, which consists of industries that produce durable and nondurable goods, accounts for about 30 % of all the final energy consumed in the country. In this study, manufacturing sector data coming primarily from the Annual Survey of Manufacturers are used to estimate the total impact of one mode of energy efficiency policy, market persuasion programs, on aggregate electricity consumption and energy expenditures. Using a panel model consisting of data for 184 industries, the findings indicate that the cumulative effects since 2002 of this policy mode is a reduction in 2010 electricity consumption of 5.4 %, of electricity expenditures of 2.4 %, and of all other fuel expenditures of 5.7 %. These estimates are derived after controlling for changes in output, other production inputs, and economic conditions. Particular attention in this study is given to the effects of a permanent shift in demand, and temporary business cycle shock, on model external validity.
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Acknowledgments
This research was funded by the US Environmental Protection Agency. The author would like to thank Elizabeth Dutrow and Caterina Hatcher as well as the anonymous referees for their comments and suggestions. The author takes sole responsibility for all errors and opinions found within.
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Horowitz, M.J. Purchased energy and policy impacts in the US manufacturing sector. Energy Efficiency 7, 65–77 (2014). https://doi.org/10.1007/s12053-013-9200-3
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DOI: https://doi.org/10.1007/s12053-013-9200-3