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EMF OP 27: The Effects of Changes in the Economic Structure on Energy Demand in the USSR and the US

Researchers in both the U.S. and the U.S.S.R. expect further reduction in their economy’s energy use per output. An important factor underlying this trend is the shift in the structure of economic production away from energy intensive sectors. This paper focuses on studies conducted in both countries to measure the relative importance of shifts within the economy on energy demand. These studies use the same methodology — a Divisia index decomposition — to separate this shift trend from other energy use trends, thus eliminating one source of discrepancy between studies. Both historical and projected trends for the two countries are examined.