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Energy use, technical progress and productivity growth: A survey of economic issues

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Abstract

In this paper I survey and interpret several of the most important aspects underlying relationships among technical progress, productivity growth, and energy use, viewed from the vantage of an economist. The first portion of the paper provides a noneconomist with a nontechnical summary of the economic theory of cost and production, and defines single-factor and multi-factor productivity growth. In the second half of the paper, four examples are presented that highlight the special role of energy consumption in inducing and reflecting the effects of technical progress and productivity growth. A common theme in the four examples is that the concepts of embodiment, diffusion and learning are critical to understanding the forces linking energy usage, technical progress and productivity growth.

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Authors and Affiliations

  1. Massachusetts Institute of Technology, Alfred P. Sloan School of Management, 50 Memorial Drive, E52-452, 02139, Cambridge, MA

    Ernst R. Berndt

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  1. Ernst R. Berndt
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The refereeing process of this paper was handled through T.G. Cowing.

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Berndt, E.R. Energy use, technical progress and productivity growth: A survey of economic issues. J Prod Anal 2, 67–83 (1990). https://doi.org/10.1007/BF00158709

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