Energy efficiency module

The module enables Integrated Assessment Models to endogenize energy saving technological progress and the rate of Autonomous Energy Efficiency Improvement. It is composed of a set of equations which maps IAM’s projections of energy prices into projections of energy intensity.

Files required to use the module

All files required to use the module are available here.

Module elements

Input data

  • Data on patents, energy prices and quantities(relevant variables are described in the excel file ‘ variable description.xls’): d_joinby_6.dta price consumption and production of industries and households.dta
  • The dataset contains foreign knowledgesStocks diffusion parameters /9described in: Verdolini, Elena and Marzio Galeotti, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March): C_KStock_phi.dta .

Description: The data sets were used to estimate the parameters of the module

Source code

  • STATA code for the first stage regressions, first stage fit
  • STATA code for the second stage regressions, second stage 9Apr2015

Description: By runnng the two STATA codes, the user can reproduce the estimates of the parameters of the key equations in the module.

How to use the module

Insert equations (20)-(23) from the working paper (see below) as additional constraints in the Integrated Assessment Model. To calibrate the parameters in these equations you can use the estimates reported in column 4 in table 3 and column 1 in table 5 in the working paper.


Witajewski-Baltvilks, Jan, Elena Verdolini and Massimo Tavoni. 2015. "Directed Technical Change and Energy Efficiency Improvements,". FEEM working papers series, 2015.78