After great improvements in energy efficiency in the 1970’s, Japan has made little progress in reducing energy consumption since 1990, the base year for the Kyoto Protocol. This study is motivated by the recent growing demands among policy makers to find all possibilities for saving energy. To make informed decisions on how to save energy, policy makers need detailed information on energy consumption structures within each jurisdiction. First, in this article, I decompose national level energy intensity into efficiency and activity effects with the Fisher Ideal index, and then estimate regressions on prefecture level residential electricity demand between 1990 and 2003. It is found that national level energy intensity declined by seventy three percent... |