Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data

Recent volatility in international energy prices has revealed Southeastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region's energy-intensive industries are faced with the challenge of weakening demand for...

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Main Author:	Iimi, Atsushi
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Energy: Demand and Supply Q410 Energy and the Macroeconomy Q430
Online Access:	http://hdl.handle.net/10986/5864

id	okr-10986-5864
recordtype	oai_dc
spelling	okr-10986-58642021-04-23T14:02:23Z Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data Iimi, Atsushi Energy: Demand and Supply Q410 Energy and the Macroeconomy Q430 Recent volatility in international energy prices has revealed Southeastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region's energy-intensive industries are faced with the challenge of weakening demand for their outputs. This paper casts light on the relation between the price and demand for energy. Based on firm-level data, it shows that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues in interpreting the results correctly, but Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services, may be required. 2012-03-30T07:34:55Z 2012-03-30T07:34:55Z 2010 Journal Article Eastern European Economics 00128775 http://hdl.handle.net/10986/5864 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Albania Macedonia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Energy: Demand and Supply Q410 Energy and the Macroeconomy Q430
spellingShingle	Energy: Demand and Supply Q410 Energy and the Macroeconomy Q430 Iimi, Atsushi Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
geographic_facet	Albania Macedonia
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Recent volatility in international energy prices has revealed Southeastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region's energy-intensive industries are faced with the challenge of weakening demand for their outputs. This paper casts light on the relation between the price and demand for energy. Based on firm-level data, it shows that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues in interpreting the results correctly, but Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services, may be required.
format	Journal Article
author	Iimi, Atsushi
author_facet	Iimi, Atsushi
author_sort	Iimi, Atsushi
title	Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
title_short	Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
title_full	Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
title_fullStr	Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
title_full_unstemmed	Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data
title_sort	nonresidential demand for energy and technical inefficiency in southeastern europe: evidence from firm-level data
publishDate	2012
url	http://hdl.handle.net/10986/5864
_version_	1764396586349101056

Nonresidential Demand for Energy and Technical Inefficiency in Southeastern Europe: Evidence from Firm-Level Data

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