Energy Intensity and Energy Demand: A Case Study for the Italian Industrial Sector

The paper presents an analysis of both energy intensity and energy demand for the Italian industrial sector. The aim of the paper is twofold: making a decomposition of energy intensity at the aggregate level and modeling energy demand at the firm level. The decomposition of energy intensity shows different patterns for the different sub-sectors in the period of interest. In the micro approach, panel data are used to investigate whether firms’ energy demand varies according to their dimension, to production factors’ price dynamic and to the sub-sector energy intensity. This kind of application at firm level represents a novelty in the empirical literature on energy in Italy.