Lithuanian manufacturing development and energy efficiency

Abstract

This paper approaches to analyze long- run energy efficiency with respect to manufacturing production in Lithuania across manufacturing sub-sectors using annual data of 1998-2011. On the basis of research the authors divide manufacturing industries into two groups, such as energy - elastic activities and inelastic ones. The paper provides the insights about the Lithuanian manufacturing sector's peculiarities in the context of its structure and energy consumption, which stress the importance of energy consumption control and promote sustainable spaces of economic development. Energy efficiency is examined from a production theoretical framework. This research is based on the previous practice existing in scientific works; and is carried out using decomposition and comparative analysis, descriptive statistic's methods and econometric techniques as well. The results show the Lithuanian manufacturing sector's concentration and considerable variation in energy efficiency across sub-sectors.The research reveals that major part of the Lithuanian manufacturing activities is 'inelastic of energy consumption. It means that the Lithuanian manufacturing is improving their energy efficiency over time and it could lead to the sustainable economic growth pattern in the future.