Export of energy technology: The case of Denmark.

This paper examines the importance of changes in energy technology for long-term trade developments. The Danish manufacturing industry is considered as a case with emphasis on the consequences of changes in the Danish energy system in the years 1966-1992. Energy technologies affect the competitive position of industries through their energy costs. Another important effect of the change in energy technologies is the competitive option for the industries producing the capital equipment of a specific energy technology. Here the consequences for the wind turbine manufactures and for the manufactures of pipes for district heating can be highlighted. The paper presents an empirical investigation of the Danish industries with respect to the energy intensity and the relative production development of the energy intense industries relative to the average industry. The degree to which basic manufacturing industries and heavy industries have decreased their energy consumption by replacing elements of own production that have high energy content with imports is examined. Energy demand changes that are related to change in trade patterns have implications for different issues as energy efficiency developments for industries, international comparisons of energy demand and the discussion of the relevance of different policy measures to reduce greenhouse gase