This book investigates the impact of production input factors on the market consumer and
producer energy demand characteristics in 30 industrial sectors for South Korea over the period
1980-2009 and for Japan over the period 1973-2006 with special emphasis placed on the effects
of ICT investment on the demand for energy. A dynamic factor demand model is developed
accounting for the adjustment costs that are defined in terms of forgone output from current
production.It addresses four key aspects of production and energy demand in manufacturing:
first it establishes the various relationships between different factors of production. Second
it investigates whether the energy demand in the industrial sectors in South Korea would be
decreased or increased by substituting complementing with other input factors such as ICT
capital and labor. Third it looks at sources of growth in the industrial sectors through
decomposing the Divisia index based total factor productivity (TFP). Finally it provides
appropriate policy recommendations based on these findings. The results of this study may
provide industrial sectors' stakeholders and environmental and industrial policy makers with a
flexible model that has the capacity to assess outcomes of various policies under certain
scenarios.The factor demand methodology described in this book is very advanced and up-to-date.
It can be used when teaching advanced graduate courses and in empirically advanced research.
Therefore it is highly relevant in both teaching as a main or supplementary text and in
particular as a reference handbook in conducting empirical research. The focus on ICT effects
on energy use makes this book an important addition to the existing literature on industrial
development.
