THE NETHERLANDS AND FOREIGN TRADE EMBODIED ENERGY: A DECOMPOSITION ANALYSIS OF STRUCTURAL AND TECHNICAL EFFECTS

Abstract: This thesis examines whether there exists any causal relationship between foreign trade and declining energy intensity in the Netherlands. In other words, does the Netherlands outsource its energy intense industries to less developed countries rather than solve them internally? No significant causal relationships is found between international trade and declining energy intensity, since the Netherlands has long been a net exporter of embodied energy and continued to be so until 2005. In addition, the ratios of net exported energy to total consumption are increasing, which means that international trade counteracted with the decline of energy intensity. These results suggest that internal forces like efficiency and technical improvements, changed consumption patterns and transformation of the energy system, have been crucial for the decline in energy intensity in the Netherland, while foreign trade has played a negative role.