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Regional Energy Demand and Energy Efficiency in Japan pp 65–81Cite as

Determinants of Energy Efficiency: Stochastic Frontier Analysis

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Abstract

In response to increased environmental constraints, it has become an important policy issue for Japan to improve energy efficiency for the future, along with the growth of regional economies. This study uses a stochastic frontier model to estimate the energy demand function and analyze the levels and determinants of energy efficiency. The empirical analysis, conducted by using data from 47 prefectures in Japan, revealed the following four findings. First, the proposed energy efficiency measure (calculated using the stochastic frontier model) is found valid, as its ranking is highly correlated with that of energy intensity. Second, increasing population density is effective in improving energy efficiency. Third, improving regional accessibility by developing a highway network helps to improve energy efficiency in Japan. Fourth, the level of energy efficiency is deteriorating in areas where raw material industries are clustered. These results indicate that the means to increasing both economic productivity and environmental efficiency are to implement a regional decentralization policy by creating major urban areas across the nation and expand a wide-area transportation network to link these areas. In addition, the promotion of technological innovations through appropriate environmental regulations is important to advance such regional policies.

The original article of this chapter is “Estimation and determinants of energy efficiency in Japanese regional economies,” published in Regional Science Policy & Practice (Vol. 7, No. 2, pp. 89–101, 2015).

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Authors and Affiliations

  1. Association of International Arts and Science, Yokohama City University, Yokohama, Kanagawa, Japan

    Akihiro Otsuka

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  1. Akihiro Otsuka
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Correspondence to Akihiro Otsuka .

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Otsuka, A. (2017). Determinants of Energy Efficiency: Stochastic Frontier Analysis. In: Regional Energy Demand and Energy Efficiency in Japan. SpringerBriefs in Energy. Springer, Cham. https://doi.org/10.1007/978-3-319-47566-0_4

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  • DOI: https://doi.org/10.1007/978-3-319-47566-0_4

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-47565-3

  • Online ISBN: 978-3-319-47566-0

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