Energy use in the U.S. service sector: An input-output analysis

Abstract

The U.S. input-output tables for 1972 and 1977 are used to examine the early adjustment of the service sector to the energy price shock of 1973–1974. IO analysis allows us to look at the indirect as well as direct changes in energy use intensity. We find a substantial decline in both primary and secondary energy intensity between 1972 and 1977 in the service sector. If 1977 energy technology, represented by the 1977 energy IO coefficients, had been used in 1972, the 19 service industry sectors would have required 23% less primary energy and 12% less secondary energy. Electricity use, on the other hand, would have increased by about 9%.