Analysing energy productivity dynamics in the OECD manufacturing sector

This work aims at developing an understanding of the dynamics of energy productivity. We analyse energy productivities for a sample of 61 OECD country-sector groups in the manufacturing sector over the period 1980 to 2009. We employ two steps of analysis, a preliminary step using a clustering algorithm that sorts countries into groupings or “clubs,” then a second step analysing factors that impact on club membership. We find (i) each group has distinctive dynamics and (ii) evidence that technology structure of production and investment are associated with higher relative energy productivity performance. Further, we find adjusting for energy quality is important.