In this paper we argue that energy efficiency and environmental efficiency are two aspects of the same problem. To show this, we assess the analytical utility of the well-known IPACT and ImPACT models, presenting here a new developed identity named Augmented ImPACT. For Italy, our findings suggest that over the last twenty years the rise of energy efficiency has been accompanied by a controversial consumption of environmental resources and of CO2 accumulation. Specifically, the italian sector of services appears to be highly inefficient. In the second part of the paper we use a VAR model to estimate the impact of energy efficiency on economy, looking at employment value added and polluted emissions. Our results suggest that a rise in energy efficiency can help in improving both economic and environmental scenarios.
- IPAT; Augmented ImPACT; Energy and Environmental efficiency; VAR
Available at: http://works.bepress.com/giuseppe_travaglini/25/