Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311148 
Year of Publication: 
2024
Series/Report no.: 
ECB Working Paper No. 2984
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We explore the increasing divergence between economic growth and energy consumption through energy-saving technical progress. Proposing a new measure of energy-saving technology, we study the underlying drivers in a semi-structural model of the U.S. economy. Our analysis shows that energy price shocks reduce consumption and stimulate energy-saving innovation, but also cause economic downturns and crowd out other innovations. Only energy-saving technology shocks can explain the negative co-movement between output and energy use. These sudden efficiency gains emerge as the primary driver of energy-saving technical change. Our findings highlight the importance of fostering energy-saving innovations in transitioning to a low-carbon economy.
Subjects: 
Directed technical change
energy-saving
innovation
energy prices
JEL: 
E0
O30
Q32
Q43
Q55
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6879-9
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.