Iranian Energy Economics

Exergetic Productivity approach for evaluating production factors in the industry sector

Articles in Press

Document Type : Research Paper

Authors

mohanna khatami 1
Hossein Khajehpour 1
وصال Vesal 2

1 Department of Energy Systems, Faculty of Energy Engineering, Sharif University of Technology, Tehran, Iran

2 Department of Economics, Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran

https://doi.org/10.22054/jiee.2025.85909.2150
Abstract
The energy sector, a central lever for environmental sustainability, needs precise indicators to evaluate how production factors mitigate resource degradation. This study introduces the Exergetic Productivity (ExP) index to quantify the exergy-based utility of capital and labor across industries. We employ an analytical panel-data design covering fourteen industries in nine developed economies from 2000 to 2019, with data compiled from international statistical databases. ExP is derived from the marginal rate of technical substitution between exergy and the other production inputs (labor and capital) implied by a Cobb–Douglas production function, whose coefficients are estimated via panel regression. The results show that in energy-intensive industries, inputs exhibit higher exergetic productivity and thus greater effectiveness in preventing exergy destruction. Over time, this potential has trended downward for capital while remaining broadly stable for labor. These patterns highlight heterogeneity in how industries convert investments and work effort into avoided exergy loss. Overall, the ExP index offers a concise and policy-relevant metric for tracking energy policy performance, prioritizing technological upgrades, and steering sustainable industrial transformation.

Keywords

Exergy
Exergetic Productivity
Extended Exergy Accounting
production factors
Subjects
Iranian Energy Economics

Articles in Press, Accepted Manuscript
Available Online from 29 September 2025

  • Receive Date 22 May 2025
  • Revise Date 27 September 2025
  • Accept Date 29 September 2025
  • First Publish Date 29 September 2025
  • Publish Date 29 September 2025

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