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Energy efficiency and agglomeration economies: the case of J apanese manufacturing industries
Author(s) -
Otsuka Akihiro,
Goto Mika,
Sueyoshi Toshiyuki
Publication year - 2014
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12039
Subject(s) - economies of agglomeration , productivity , metropolitan area , efficient energy use , energy consumption , economic geography , panel data , manufacturing , economics , consumption (sociology) , industrial organization , economy , business , economic growth , geography , econometrics , engineering , marketing , social science , archaeology , electrical engineering , sociology
Along with various environmental concerns, J apan has an important policy issue arising from the development of its economies. The issue is how to simultaneously attain regional economic growth and energy efficiency. This study has examined impacts of agglomeration economies on energy efficiency of J apanese manufacturing industries. Using a prefecture‐level panel data set from Energy Consumption Statistics, this study identifies the following three empirical findings. First, the productivity growth has improved energy efficiency, but not vice versa. Second, agglomeration economies, which are a driving force for productivity growth, have improved the energy efficiency of J apanese manufacturing industries. Finally, localization economies by agglomerating similar industries are effective in improving the energy efficiency in rural areas. The third finding is consistent with many previous studies, claiming that agglomeration economies based on localization occur for many medium‐sized cities. The result implies that it is an important policy direction for J apan to formulate medium‐sized cities in rural areas than large metropolitan cities in terms of improving the energy efficiency of manufacturing industries.