In this seminar Anil Kavuri will provide an overview of his recent paper, ‘Effect of Subsector Energy Efficiency Changes upon Carbon Emissions’. Given the central role of energy efficiency and limitations of current models for accurate analysis, this study makes contributions to this debate. First, by constructing a Subsector Mix-Unit Input-Output Efficiency Matrix that incorporates a subsector KLEM production framework. In short, the model, consists of three components; modelling at a subsector level, analysing in applicable units and, undoubtedly the most significant contribution, a detailed process level efficiency framework. The effectiveness of the proposed model and the most widely used alternative-structural decomposition analysis in isolating the effects of subsector energy efficiency trends on emissions is tested by the author. To this end, a data set is constructed to test the models. The results found by Anil show that the proposed model correctly isolates subsector/processes energy efficiency developments, the effects of product additions and is able to imply energy input price and output price changes, whereas structural decomposition approaches possess great difficulties failing all parts of the test. Given the models ability to project bottom up process level energy efficiency changes onto the economy, there is a clear case for data collection to enable practical application of the model.

Anil Kavuri graduated with a First Class Honours from University College of London being placed top of student body in Game Theory, Experimental Economics and Money and Banking. He holds an MPhil in Finance from University of Cambridge and Chartered Financial Analyst accreditation level I and level II, and also holds a master degree in Energy Management and Policy from Columbia University with a GPA’s of 4.13 in the energy concentration and 3.83 overall. After graduation he undertook a short-term position of Energy Project Finance Consultant at the World Bank in Washington, after which he obtained a position as a project financier in the power and utilities division of Scotia Capital on Wall Street. He undertook research positions at Climate Strategies and Centre for Low Carbons prior to his PhD at ANU. During his PhD, he visited University of Leeds and UK Indemand Centre.

The CAMA Macroeconomics Brown Bag Seminars offer CAMA speakers, in particular PhD students, an opportunity to present their work in progress in front of their peers, and reputable visitors to showcase their work.