Understanding industrial energy use: structural and energy intensity changes in Ontario industry

A large number of studies have examined the relative importance of structural versus intensity changes on the evolution of industrial energy use. Relatively little research, however, has been done to better understand why these changes have occurred. Using an econometric approach, this paper attempts to provide insight into the changes in industry structure and energy intensity that occurred in Ontario between 1962 and 1992. The estimation successfully identifies and measures cyclical and trend components for both the structural and intensity indices, the cyclical component being due to changes in industrial output, the trend component, likely due to changes in technology and consumer preferences.

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