Energy Consumption and CO2 Emissions in the German and British Industrial Sectors
Energy Consumption and CO2 Emissions in the German and British Industrial Sectors
This chapter assesses the determinants of CO2 emissions in different German and UK industrial sectors by adopting two approaches well established in the economic literature, i.e. the estimation of energy demand and of an environmental Kuznets curve. The first approach focuses on the effect of the energy price alongside economic activity. By estimating industrial energy demand, the effect of future energy taxes and price increases on the consumption can be assessed. In the second approach, the focus is more on economic activity and the shape of the relationship between economic activity and CO2 emissions. The effect of a number of variables in this relationship is assessed, namely the energy price, the consumption of capital, materials, labour, and services, and the intensity of energy use.
Keywords: CO2 emissions, energy demand, environmental Kuznets curves, industrial sectors
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