interfuel substitution biomass consumption economic growth and sustainable development evidence from brazil abstract this paper examines the possibilities of substituting the fossil fuels including natural gas coal and oil for biomass consumption in brazil for the period 1980 2015 we used the ridge regression procedure to generate the parameter estimates from a second order taylor series approximation of log linear trans log specification for robustness sake we constructed an index of sustainable development sd as additional regressand alongside the conventional gross domestic product gdp overall the results show strong evidence of substitution possibilities between biomass and the fossil fuels in both the gdp and the sd models indicating that brazil can continue with its growth and sustainability agenda by using more biomass and less fossil fuels the results also show that the sd model gives a more robust output elasticity estimates as it detects the inherent negative effect of some of the fossil fuels on the economy that are not directly observable in the gdp model

substitution in the electric power industry an interregional comparison in the eastern us abstract the electric power industry is restructuring as regulations move from states to regional and national levels estimates of regional fuel and input substitution are essential for practitioners and policy makers this paper estimates substitution under static and dynamic scenarios examining changes in technology and total factor productivity from 2001 to 2008 two stage estimation reveals regional characteristics and underlying elements in fuel and factor choice processes substitution varies widely depending on the region coal technology capital investment and r d activities

substitution technical change and returns to scale in british columbian wood products industries the size and quality of timber in british columbia declined steadily through the 1960s and 1970s this paper presents estimates of factor substitution technical change and returns to scale for four british columbian wood products industries interior and coast sawmills and planing mills shingle mills and plywood and veneer mills using pooled cross section time series data 1963 79 estimates of capital stocks are not available for these industries so estimates of capital services are computed from aggregate capital stock and energy consumption data the estimated cost functions are well behaved and show that all the inputs capital services materials and labour are substitutes thus capital services and labour can be substituted for the increasingly scarce natural resource the input demand functions slope down and are inelastic interior sawmills exhibit constant returns to scale while the other industries show increasing returns to scale the technical change is capital services using labour s

an evaluation of technical progress and energy rebound effects in china s iron steel industry abstract as a pillar industry in china the iron steel sector have under through rapid growth and technical progress for decades however energy polices aiming at energy savings may not be as good as expected due to the existence of rebound effects the motivation of the paper is to analysis the nexus between technical progress and energy rebound effects based on a three input trans log cost function model we first estimate the share equation and the corresponding price elasticity for each input factor then the rebound effect in china s iron steel industry over 1985 2015 is evaluated through decomposing the energy prices empirical results show that 1 the price elasticities of input factors are negative 2 energy capital and energy labor show substitute relationships 3 the average energy rebound effect in the isi is as high as 73 88 4 the energy rebound effect shows a downward trend before the 11th five year period and then an upward trend after that therefore policies proposals of lowering the rebound effect should be placed not only on technical progress but also on energy price reform by reducing energy subsidies and thus accelerating energy price marketization so as to promote energy substitution reduce energy rebound effect and produce further economic and environmental benefits

management of non maturing deposits by multistage stochastic programming abstract the management of non maturing account positions in a bank s balance like savings and sight deposits as well as certain types of variable rate mortgages is complicated by the embedded options that its clients may exercise in addition to the usual interest rate risk uncertainty in the timing and amount of cash flows must be taken into account when investment or refinancing strategies are determined this paper introduces a multistage stochastic programming model where the stochastic evolution of interest rates and volume under management is described by stochastic processes in discrete time scenarios are generated by means of barycentric approximation which is particularly useful to deal with the observed correlations between interest rates and volume practical experience from the application at a major swiss bank is reported where the model has been employed since the mid 90s

substitution possibility between unpriced pulp and wastepaper in the u s paper and paperboard industry a greater use of recycled wastepaper would preserve virgin forests as well as reducing the amount of wastepaper going to landfills these environmental goals depend critically on the elasticity of substitution between pulp and wastepaper in producing paper and paperboard since most of the pulp consumed by u s paper mills and paperboard mills is transferred internally from vertically integrated pulp mills the price data on pulp is not available this paper constructs an econometric model which enables us to estimate the substitution possibility between unpriced pulp and wastepaper in the u s paper and paperboard industry empirical results show that the elasticity of substitution between unpriced pulp and wastepaper is positive but not statistically significant

inter factor inter fuel substitution carbon intensity and energy related co2 reduction empirical evidence from china carbon dioxide co2 reduction which is the central issue in addressing global warming depends on the extent that clean energy can substitute for co2 emitting coal and non energy factors can substitute for energy factor the purposes of this paper are to empirically investigate inter factor inter fuel substitution in china and to evaluate the determinants of china s energy related carbon intensity as well as mitigation effects of carbon tax considering china s rapid increase in energy consumption and the slow adjustment in substitution the two stage estimation method and the dynamic error correction mechanism are employed in this study the empirical results suggest substitutability among different types of energy sources as well as substitutability among energy labor and capital the magnitude of cross price elasticities indicates that the substitutions are inelastic which limits the scope of the chinese government to implement substitution strategy aiming at energy conservation and environmental management china s carbon intensity declined during 1985 2012 most of which can be attributed to labor substitution and energy price increase however carbon intensive technology being embodied in china s capital investment energy consuming equipment has contributed to the increase in carbon intensity a carbon tax of rmb 50 tonne could reduce 332 9 million tonnes co2 emissions on the basis of 2012 in addition if ignoring the feedback between inter factor inter fuel substitutions co2 mitigation potential would be underestimated

factor input in nhs hospitals there has been little empirical work on the amount of substitution through time amongst the various resources used by the hospital sector this neglect arises largely from the lack of adequate time series data on resource levels this study uses data previously collected by one of the authors to examine trends in the use and cost of labour and capital resources by the nhs hospital sector over the period 1951 to 1981 a small econometric model is used to quantify the degree of substitution that occurred over that period ref

industrial energy substitution during the 1980s in the greek economy abstract factor substitution in greek manufacturing during the 1980s is examined using pooled data in static and dynamic translog expenditure share models inputs are capital labor electricity and non electrical energy liquid solid gas own price elasticities for capital and labor are inelastic but for electricity more elastic 0 90 results indicate substitutability among factors in the short run in the long run electricity and capital are complements as are labor and non electrical energy greek manufacturing is predicted to continue decreased consumption of liquid fuels to the year 2000 continuing the electrification begun in the 1970s

application of the translog model of energy substitution to developing countries the case of korea abstract while studies exist on the applications of the translog energy model in developed countries little is known about its application in developing countries to this end this paper investigates the long run sensitivities of energy demand to price changes and the degree of interfactor and interfuel substitution in the korean industrial sector we also uniquely disaggregate the industrial sector into nine manufacturing and three non manufacturing subsectors based on time series data obtained from the korea institute of energy and resources an energy demand model has been specified and estimated according to the translog approach the conclusions provide future directions for energy demand management policies in korea

economic growth and interfactor interfuel substitution in korea this paper investigates the impact of increases in oil consumption and changes in wage rates on the interfactor interfuel substitution in korea a two stage translog cost function is estimated to incorporate the feedback effect between the interfactor and interfuel substitution empirical results show that the substitutability complementarity relationships among factors and fuels exhibit substantially different patterns before and after 1989

an equilibrium model of bond pricing and a test of market efficiency in two previous and related papers 3 4 the authors have reported the results of estimating a particular equilibrium model of bond pricing using quarterly data on canadian government bonds for the period 1964 to 1979 this paper reports the results of applying a similar model to the pricing of u s government bonds for the period 1958 1979 using data from the crsp government bond file the paper also extends the previous empirical analysis by evaluating the ability of the pricing model to detect underpriced and overpriced bonds the data reveal a strong relation between price prediction errors and subsequent bond returns

exploring the green total factor productivity of china s metallurgical industry under carbon tax a perspective on factor substitution abstract the characteristics of high emissions and high energy consumption in metallurgical industry have brought great challenges to the green and low carbon transition in china as a low carbon economic instrument carbon tax is generally considered to be an effective way to reduce co2 emissions through raising energy cost but whether it will promote the green total factor productivity gtfp of china s metallurgical industry is still unanswered under this background this paper uses provincial panel data over years 2000 2015 to investigate the impact of carbon taxation on gtfp of metallurgical industry from the perspective of inter fuel and inter factor substitution the lock in mechanism is also incorporated in the three stage estimation model to better reflect the asymmetric price response of factors and fuels the results reveal that the slow marketization process of energy price and the rigid demand for energy in china s metallurgical industry hinder the substitution effect of energy the implementation of carbon tax has limited effect on energy saving and co2 reduction in the metallurgical industry of china and levying a carbon tax has a negative effect on gtfp during the research period therefore the government should not achieve co2 reduction targets at the expense of green economic growth gtfp is suggested to be considered in future assessment criteria in the process of transforming to low carbon economy

assessing energy price induced improvements in efficiency of capital in oecd manufacturing industries to assess how capital stocks adapt to energy price changes it is necessary to account for the impacts on different vintages of capital and to account separately for price induced and autonomous improvements in the energy efficiency of capital stock the results of econometric analysis for five manufacturing industries in 19 oecd countries between 1990 and 2005 indicate that higher energy prices resulted in smaller energy use due to both improved energy efficiency of capital stock and reduced demand for the energy input the investment response to energy prices varied considerably across manufacturing industries being more significant in energy intensive sectors the results of policy simulations indicate that a carbon tax can deliver significant reductions in energy consumption in the medium run with modest declines in energy using capital stock

parameter estimation in stochastic scenario generation systems abstract scenario analysis offers an effective tool for addressing the stochastic elements in multi period financial planning models critical to any scenario generation process is the estimation of the input parameters of the underlying stochastic model for economic factors in this paper we propose a new approach for estimation known as the integrated parameter estimation ipe this approach combines the significant features of other well known estimation techniques within a non convex multiple objective optimization framework with the objective weights controlling the relative importance of the features we solve the non convex optimization problem using adaptive memory programming a variation of tabu search based on a short interest rate model using uk treasury rates from 1980 to 1995 the integrated approach compares favorably with maximum likelihood and the generalized method of moments we also evaluate performance with towers perrin s cap link scenario generation system

the sharing of total factor productivity gains in canadian manufacturing a price accounting approach 1965 1980 this papers user a price accounting approach to measure total factor productivity growth in canadian manufacturing at the two digit level over the period 1965 80 its purpose is to describe how given productivity improvements have been apportioned among labour capital materials and government through an increase in the price of these factors or through an increase in taxes levied on factor inputs and consumers through a decrease in the industry selling prices

substitution possibilities and determinants of energy intensity for china abstract this paper measures technological change factor demand and inter factor and inter fuel substitutability measures for china we use individual fuel price data and a two stage approach to estimate total factor cost functions and fuel share equations both inter factor and inter fuel substitution elasticities are calculated and the change in energy intensity is decomposed into its driving forces the results suggest that energy is substitutable for capital regionally and for labor nationally capital substitutes for energy more easily than labor does energy intensity changes vary by region but the major drivers seem to be budget effect and the adoption of energy intensive technologies which might be embodied in high level energy using exports and sectors capital investment and even old technique and equipment imports whether the trend in rising energy intensity continues will be significant for china and the rest of the world

do manufacturing firms react to energy prices evidence from italy abstract the reaction of energy demand to price changes is a key policy issue as it describes the economy s response to changes in market conditions or to policy interventions the issue is even more important for the italian economy highly exposed to energy price changes given its almost complete fossil fuel related energy dependence environmental sensitivity and highly fragmented industrial structure besides the policy issue there is also an important methodological debate concerning the best way to evaluate energy demand elasticities looking at alternative models data and elasticity definitions after a discussion of the main methodological issues and the related empirical literature this paper presents an estimation of factor and fuel demand elasticities for italian industrial firms by using a microeconomic panel in a two stage translog model using cross price and morishima elasticities we obtain information on the magnitude and asymmetry of firms responses to price changes moreover the use of a micro dataset allows the high heterogeneity of italian firms to be considered the results are discussed according to technology intensity sector and firm size our findings show that energy is the most elastic input for all sectors and that capital and energy are substitutes in the low technology sector and weak complements in all others estimated interfuel elasticities show a high degree of demand sensitivity to fuel price changes and the vast majority of cross price elasticities exhibit substitutability appropriate fiscal policies can thus be identified to give an effective impulse in influencing the industrial energy mix by changing relative prices these findings constitute an important foundation for analysing energy demand by italian industrial firms given that empirical literature is particularly rare on the italian case study

an intertemporal general equilibrium model of asset prices this paper develops a continuous time general equilibrium model of a simple but complete economy and uses it to examine the behavior of asset prices in this model asset prices and their stochastic properties are determined endogenously one principal result is a partial differential equation which asset prices must satisfy the solution of this equation gives the equilibrium price of any asset in terms of the underlying real variables in the economy in this paper we develop a general equilibrium asset pricing model for use in applied research an important feature of the model is its integration of real and financial markets among other things the model endogenously determines the stochastic process followed by the equilibrium price of any financial asset and shows how this process depends on the underlying real variables the model is fully consistent with rational expectations and maximizing behavior on the part of all agents our framework is general enough to include many of the fundamental forces affecting asset markets yet it is tractable enough to be specialized easily to produce specific testable results furthermore the model can be extended in a number of straightforward ways consequently it is well suited to a wide variety of applications for example in a companion paper cox ingersoll and ross 7 we use the model to develop a theory of the term structure of interest rates many studies have been concerned with various aspects of asset pricing under uncertainty the most relevant to our work are the important papers on intertemporal asset pricing by merton 19 and lucas 16 working in a continuous time framework merton derives a relationship among the equilibrium expected rates of return on assets he shows that when investment opportunities are changing randomly over time this relationship will include effects which have no analogue in a static one period model lucas considers an economy with homogeneous individuals and a single consumption good which is produced by a number of processes the random output of these processes is exogenously determined and perishable assets are defined as claims to all or a part of the output of a process and the equilibrium determines the asset prices our theory draws on some elements of both of these papers like merton we formulate our model in continuous time and make full use of the analytical tractability that this affords the economic structure of our model is somewhat similar to that of lucas however we include both endogenous production and

spatial analysis of change trend and influencing factors of total factor productivity in china s regional construction industry total factor productivity tfp is a measure of long term economic growth and a comprehensive industry level productivity measure there are large gaps in china s regional construction industry dev

interfuel substitution a meta analysis interfuel substitutability has been of longstanding interest to the energy economics and policy community however no quantitative meta analysis has yet been carried out of this literature this paper fills this gap by analyzing a broad sample of studies of interfuel substitution in the industrial sector manufacturing industry or subindustries or macro economy of a variety of developed and developing economies publication bias is controlled for by including the primary study sample size in the meta regression results for the shadow elasticities of substitution between coal oil gas and electricity for forty six primary studies show that at the level of the industrial sector there are easy substitution possibilities between all the fuel pairs with the exception of gas electricity and coal electricity substitution possibilities seem more constrained at the macro level and less constrained in sub industries estimates also vary across countries publication bias does not seem to be present but model and data specification issues very significantly affect the estimates derived by each individual study estimates from cross section regressions are generally largest fixed effects panel estimates intermediate in magnitude and time series estimates are mostly much smaller econometric research suggests that the fixed effects estimates are likely the best among the existing studies though biased downwards

a dynamic putty semi putty model of aggregate energy demand energy conservation dominated the adjustments of the energy decade the present study develops further the aggregate analysis to revisit the question of energy flexibility within the context of a multi factor dynamic model the resulting model preserves various adding up constraints cross equation parameter restrictions and consistent indexes within an ad hoc stock adjustment dynamic process applications to data for the usa and japan confirm the estimates of large long run elasticities under the assumption of a slow adjustment process

a comparative analysis of the use of information inputs in the manufacturing sectors of korea and japan abstract the paper examines the use of two information inputs information labor and purchased information services in korean and japanese manufacturing sectors in 1980 marginal products and substitution elasticities are calculated from translog production function estimates for the average manufacturing sector both inputs seem to be relatively more underused in korea second the elasticity estimates suggest several hypotheses about the growth of private bureaucracies in the two economies the results are unlikely to apply to other economies which have not yet attained an advanced industrial structure a simplistic stages theory of economic development based on the growth of the information labor force is rejected

factor substitution and economies of scale and utilisation in kuwait s crude oil industry abstract the cost structure of the crude oil industry in kuwait has been examined with specific focus on factor substitution and economies of scale and utilisation this has been done by estimating translog cost functions both long run and short run using time series data covering the period from 1976 to 1996 the results indicate that the implied production structure is non homothetic and the pattern of scale effect is labour saving but capital and material using the evidence also supports the presence of an induced exogenous technical change which is non neutral labour and capital using and material saving the elasticity of substitution between capital and labour is positive implying that the two inputs are substitute the results also indicate the existence of diseconomies of scale in the production of crude oil but no economies or diseconomies of utilisation

interfuel and interfactor substitution in ontario manufacturing 1962 82 the extent of substitutability between energy and the other factors i e labour and capital is an extremely important question and quite central to energy policy planning and analysis this paper addresses this question for the ontario manufacturing sector the theoretical model utilized in this analysis is the two stage translog production frontier the model was estimated for seven manufacturing sectors using four disaggregated energy inputs and labour and capital the model was estimated by the fiml technique for the period 1962 82

validating energy oriented cge models although cge models have received heavy usage they are often criticized as being insufficiently validated key parameters are often not econometrically estimated and the performance of the model as a whole is rarely checked against historical outcomes as a consequence questions frequently arise as to how much faith one can put in cge results in this paper we employ a novel approach to the validation of a widely utilized global cge model gtap e by comparing the variance of model generated petroleum price distributions driven by historical demand and supply shocks to the model with observed five year moving average price distributions we conclude that energy demand in gtap e is far too price elastic over this time frame after incorporating the latest econometric estimates of energy demand and supply elasticities we revisit the validation question and find the model to perform more satisfactorily as a further check we compare a deterministic global general equilibrium simulation based on historical realizations over the 2001 2006 period during which petroleum prices rose sharply along with growing global energy demands as anticipated by the stochastic simulations the revised model parameters perform much better than the original gtap e parameters in this global general equilibrium context

econometric estimates of scale economies in canadian manufacturing an econometric analysis of cost scale relationships in 147 canadian manufacturing industries using plant level data for 1979 is presented the results suggest that there are increasing returns to scale in a majority of industries but also that a significant fraction of industries are characterized by constant returns the cost penalty associated with sub optimal scale amounts to roughly 4 of the total manufacturing costs finally although wage rates and product diversity have no significant impact on unit cost in most industries some industries are affected when the usual cross sectional assumption of constant wage rates and product diversity is relaxed

subsidization and stabilization optimal employment policy under aggregate uncertainty the authors study an economy where externalities provide an explicit role for intervention and technology shocks generate aggregate uncertainty in laissez faire there is too much unemployment however the authors show how to support the optimal allocation as a decentralized equilibrium using a self financing linear employment subsidy generally this subsidy is a function of economic conditions and they characterize the way in which it varies with the shock a special case of the authors results indicates that a simple restriction on technology homotheticity implies the optimal subsidy is constant or independent of unemployment copyright 1991 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

electricity demand of manufacturing sector in turkey a translog cost approach abstract this paper models factor demand for manufacturing sector in turkey we estimated a translog cost function with four factor consist of capital labor intermediate input and electricity over the 1980 2001 our objective taking in the consideration electricity as production input was twofold on the one hand to estimate the price elasticity of electricity demand in manufacturing sector and on the other hand to use cross price and morishima elasticities of substitution results for structural analysis regarding effects of electricity liberalization which initiated in 2001 empirical result shows that electricity demand is relatively price sensitive 0 85 our result in terms of electricity price is consistent with the previous studies while electricity labor and electricity capital inputs are complementary results indicate the existence of substitution possibilities between electricity and intermediate input this means that changes in electricity prices have impact on labor demand and investment demand these results have important implications for public policy

brown backstops versus the green paradox abstract anticipated climate policies are ineffective when fossil fuel owners respond by shifting supply intertemporally the green paradox this mechanism relies crucially on the exhaustibility of fossil fuels we analyze the effect of anticipated climate policies on emissions in a simple model with two fossil fuels one scarce and dirty e g oil the other abundant and dirtier e g coal we derive conditions for a green orthodox anticipated climate policies may reduce current emissions the model can also be used to analyze spatial carbon leakage calibrations suggest that intertemporal carbon leakage from 0 to 8 is a relatively minor concern

solving long term financial planning problems via global optimization abstract a significant multi stage financial planning problem is posed as a stochastic program with decision rules the decision rule called dynamically balanced requires the purchase and sale of assets at each time stage so as to keep constant asset proportions in the portfolio composition it leads to a nonconvex objective function we show that the rule performs well as compared with other dynamic investment strategies we specialize a global optimization algorithm for this problem class guaranteeing finite e optimal convergence computational results demonstrate the procedure s efficiency on a real world financial planning problem the tests confirm that local optimizers are prone to erroneously underestimate the efficient frontier the concepts can be readily extended for other classes of long term investment strategies

decomposing energy demand across briic countries energy plays an important role within the production technology of fast emerging economies such that firms reaction to changes in energy prices provides useful information on factor productivity and factor intensity as well as the likely outcome of energy policy initiatives among other things drawing on duality theory this paper decomposes changes in energy demand into substitution and output effects using annual sector level production data for brazil russia india indonesia and china briic for the period 1995 2009 unlike previous studies this study analyzed the economic properties of the underlying production technology results indicate that changes in energy demand are strongly dominated by substitution effects more importantly an intriguing finding that emerges from our analysis is the role of economies of scale and factor accumulation as opposed to technical progress in giving rise to the growth performance of sampled economies

input substitution economies of scale and productivity growth in the us upholstered furniture industry cost factor demand and productivity growth are considered in the upholstered furniture industry over 1958 87 factors are divided into labour capital and materials it is found that all inputs are substitutes in production although substitution elasticities are small factor demand is price inelastic for all inputs the industry operates around minimum average cost productivity growth is small but significant the results indicate that labour will continue to be important in the industry however regional comparative advantage is not related to labour alone the results suggest that policies to attract or retain the industry must consider the low degree of factor substitution

energy and economic growth in industrializing countries the case of greece abstract this paper investigates some aspects of the interrelated paths of economic growth and energy demand in the case of an industrializing economy through the use of numerous econometric models translog functions have helped establish that income and price elasticities of energy two critical parameters in the energy economy interaction exhibit falling trends with time the value share of the industrial sector is strongly associated with both energy demand and energy intensity any increase in the former will lead to amplified increases in the latter rendering the continuation of past trends in industrial expansion questionable under conditions of high energy costs substitution among capital labour and energy does take place though to a limited extent as indicated by the aggregate measure of energy non energy substitution elasticity all findings appear to suggest that energy policymaking in an industrializing country like greece will be of low effectiveness until certain structural changes in the economy are realized

inter fuel substitution technical change and the demand for energy in the uk economy a model for energy demand based on a translog cost function is formulated unlike previous studies technical progress is modelled by means of stochastic as opposed to deterministic trend components the model is estimated using quarterly uk data for four economic sectors and forecasts of the future level of demand are made

conjoint analysis of industry location preferences evidence from the softwood lumber industry in the us conjoint analysis ca was used to study location preferences among members of the softwood lumber industry in the southern and western regions of the us this industry was selected as an example of a resource based industry to test several hypotheses derived from location theory decision makers owners and managers identified price of logs and distance to sources for logs as the most important location factors a secondary category included wages and energy costs other variables such as cost of land quality of access roads and distance to markets are less important there were statistically significant differences in the part worth estimates of raw materials and wage costs among decision makers but not between regions in an ordered model for site preference marginal analysis of the price of logs stressed its importance as the major location factor in the softwood lumber industry

oil shocks and the dynamics of substitution adjustments of industrial fuels in the us this paper investigates substitution among such alternate fuels as coal natural gas and electricity during the actual oil price increases of 1970s these substitution adjustments are assumed to be dynamic and modelled by a partial adjustment structure this dynamic structure is incorporated into a translog cost technology short and long run price elasticities are estimated by identifying inter and intra industry variations the models are estimated with a sample of 88 pooled observations including distillate and residual oils purchased by eleven 2 digit manufacturing groups 1974 81 models are estimates are strictly negative these own price elasticities range from long to short run 2 93 to 2 55 for distillate oil 0 698 to 1 53 for residual oil 0 533 to 0 011 for coal 0 235 to 0 213 for natural gas to 0 888 to 0 845 for electricity estimastes of both short run and long run cross price elasticities suggest that coal and electric energy are the prominent substitutes for fuel oils w

investigating co2 mitigation potentials and the impact of oil price distortion in china s transport sector abstract the transport sector is a major source of oil consumption and co2 emissions in china however due to the regulated pricing mechanism in china the end user oil price cannot reflect real market price and thus oil price distortion exists therefore the main aim of this paper is to study the affecting mechanism of oil price distortion on co2 emission mitigation firstly the level of oil price distortion is evaluated and a dynamic trans log cost function model is built to analyze the substitution relationship among energy products secondly the own price elasticity and cross price elasticity for fuel demand are calculated based on provincial panel data of china s transport sector over 2004 2016 finally co2 mitigation potentials are estimated by removing the impact of oil price distortion results show that 1 there is positive oil price distortion over 2004 2016 2 substitute relationship is observed between oil and coal oil and electricity and the substitution relationship is affected by factor substitution 3 removing oil price distortion will reduce co2 emissions of china s transport sector by 599 million tons in the studying period policies should focus removing the impact of oil price distortion promoting electricity oil substitution and promoting capital energy substitution to mitigate co2 emissions

energy and capital substitutes or complements a note on the importance of testing for non neutral technical progress this note investigates the importance of testing the validity of the hicks neutral technical progress assumption in the context of examining the substitutability or complementarity between capital labour and energy in the uk industrial sector it is found that the hypothesis of neutral technical progress must be rejected in favour of the non neutral hypothesis with technical progress thus biased to using both capital and energy but to saving labour in addition it is found that all three factors are substitutable for one another when non neutral technical progress is modelled

energy conservation in electricity generation a case study of the electricity and water industry in kuwait this paper has examined possibilities of energy conservation in the generation of electricity and water in kuwait this has been done through analysing the underlying production structure by employing a translog flexible cost function and using series data the results show that in the absence of changes in factor prices fuel intensity of electricity and water is expected to increase with increase in output furthermore capital and fuel are found to be substitutes overall the evidence suggests that energy conservation can be achieved by using fuel prices as instruments this is likely to induce demand for new capital and hence promote productivity gains

energy and capital substitutes or complements some results for the uk industrial sector this paper investigates the substitutability or complementarity possibilities between capital labour and energy in the uk industrial sector with particular attention to the captial energy relationship it is found using the translog cost function approach that capital and labour as well as energy and labour are substitutes however capital and energy are found to be complements

rebound effect of transportation considering additional capital costs and input output relationships the role of subsistence consumption and unmet demand abstract the anticipated carbon mitigation through energy saving technology progress might be partially or even totally offset due to rebound effect a better understanding of rebound effect especially the underling mechanisms has important implications for energy efficiency policies to achieve the goal of sustainability previous studies usually ignore additional capital costs for adopting energy efficient equipment and indirect carbon emissions for providing new consumption bundles also the precise mechanisms of how living standard affects rebound effect are unknown using almost ideal demand system aids model and input output relationships among sectors this paper builds a method to estimate the rebound effect that allows for additional capital costs and carbon emission changes of all other goods and services due to backward forward linkages we find that rebound effect is over 100 for transportation in rural china even though additional capital costs would indeed reduce the magnitude and the results are quite robust to alternative settings as for the mechanisms rebound effect is divided into substitution and income channels by slutsky decomposition here we show that both of these two channels are dependent on living standard because of subsistence consumption and unmet demand carbon emissions of poor households will rebound more through income channel of unmet demand while rich households usually do not restricted by subsistence consumption and thus through substitution channel rebound of carbon emissions would be larger for rich households the opposite directions of mechanisms dig more information about the nonlinearity of rebound effect to income levels furthermore given the estimating results this paper gains several insights in terms of welfare benefits rather than just focuses on carbon reduction

economies of scale and utilization in electricity generation in kuwait cost structure of electricity generation in kuwait has been examined with specific focus on the economies of scale and utilization this has been done by estimating a translog variable cost function using time series data covering the period from 1965 to 1990 the results indicate the existence of diseconomies of scale in the generation of electricity but no economies or diseconomies of utilization

the impact of green innovation on energy intensity an empirical analysis for 14 industrial sectors in oecd countries abstract this paper analyses the impact of green innovation on energy intensity in a set of 14 industrial sectors in 17 oecd countries over the 1975 2005 period we create a stock of green patents for each industrial sector and estimate a translog cost function to measure the impact of green innovation on energy intensity next to other factors such as input substitution and autonomous technical change we find that green innovation has contributed to the decline in energy intensity in the majority of sectors the median elasticity of energy intensity with respect to green patenting is estimated at 0 03 in our sample hence a 1 increase in green patenting activities in a given sector is associated with a 0 03 decline in energy intensity the magnitude of the effect is robust across various specifications and is larger in more recent years a decomposition exercise shows that overall half of the decrease in energy intensity over the sample period is related to changes in input prices and half to changes in production technologies

energy conservation in china s light industry sector evidence from inter factor and inter fuel substitution following the impressive economic achievements in the past decades china is faced with energy and environmental challenges to carry out more effective and targeted energy policies the heterogeneities of different industrial sectors are of great importance the energy consumption of china s light industry in 2012 was 316 million tons of coal equivalents which is about the energy consumption of south korea the paper explored the substitution relationships between various input factors and fuel sources and showed that electricity price reform is crucial for energy conservation in china s light industry then the dynamics of energy intensity change is examined by decomposing energy intensity into budget effect substitution effect output effect and technology advance effect the result revealed that the substitution effect between input factors is a key driving force however technology progress seems to contribute very little for future energy policy alternatives promoting the implementation of new conservation technology and electricity price reform may be effective measures

delving into liberia s energy economy technical change inter factor and inter fuel substitution abstract the industrial energy mix of liberia is dominated by petroleum products this has generated serious environmental problems contributing immensely to co 2 emissions and other pollutants in the country this study has attempted to investigate the potential for inter factor and inter fuel substitution between capital labor petroleum and electricity in liberia by employing a translog production and cost function approach ridge regression procedure has been adopted to estimate the parameters of the function due to multicollinearity in the data estimation results show that all inputs are substitutes these suggest that price based policies coupled with capital subsidy programs can be adopted to redirect technology use towards cleaner energy sources like electricity hence retaining the ability to fuel the economy while also mitigating greenhouse gas ghg emissions substitution between energy and labor and energy and capital implies that removal of price ceilings on energy in liberia would tend to reduce energy use and increase capital and labor intensiveness notwithstanding the study seems to show no evidence of convergence in relative technological progress of the four inputs implying that petroleum will continue to play a dominant role in the energy consumption mix of liberian industry while labor investment will continue to outweigh capital inputs finally the findings of this study provide general insights and underscore the importance of policies that focus on installed capacity of renewable electricity energy intensity targets as well as merger of enterprises

energy price variation and competitiveness firm level evidence from indonesia abstract this paper uses firm survey data from the manufacturing and mining sectors in indonesia and investigates the extent to which energy prices affect competitiveness proxied by profitability persistent regional price differences due to indonesia s insular geography enable this study to show that energy prices have a small but statistically significant adverse long run effect on competitiveness though different energy types matter in different sectors by estimating cross and own price elasticities and uzawa allen partial elasticities of inter fuel substitution this study also shows that firms have the ability to respond to higher energy prices by adjusting their energy mix i e substituting certain energy goods for others moreover this study shows that firms also respond to higher energy prices by increasing energy efficiency and by passing on costs to end users nevertheless these response measures are not sufficient to fully mitigate the adverse effect of energy prices on firms based on these results policy recommendations are offered which are of immediate relevance for the design of energy pricing reforms

the geography of technological change in the information economy hepworth m 1986 the geography of technological change in the information economy reg studies 20 407 424 innovations in information technology are transforming urban and regional systems through their impacts on production and distribution processes case studies of canadian multi locational firms are used to examine this spatio economic transformation in the context of the new information based service economy by focusing on computer networks as spatial systems of information technology it is shown that these innovations can lead to centralized and decentralized patterns of direct production and office activity new insights are also developed into the telecommunications transportation trade off and the key role of telecommunications in regional development

asymmetric substitutability between energy and capital evidence from the manufacturing sectors in 10 oecd countries abstract this paper investigates the substitutability between energy and capital in the manufacturing sectors of ten oecd countries since 1980 by applying a cost function approach that has been widely used to analyze industrial energy demand first we attempt to determine the source of the disagreement in the literature on the substitutability between energy and capital and reach a conclusion regarding the substitutability between energy and capital dividing energy and capital into sub inputs we analyze their substitutability the empirical results indicate that fuel tends to complement capital in most countries whereas electricity and capital are substitutes thus this study confirms that heterogeneity in energy sources is a primary component of the systematic variation in the substitutability between energy and capital second we examine asymmetric substitutability between energy and capital by estimating the morishima elasticity of substitution the estimates of the morishima elasticity of substitution demonstrate that the substitution of energy for capital has dominated the substitution of capital for energy this asymmetric substitutability is natural from the producer perspective because capital costs are much greater than energy costs in most countries these results imply that the adoption of energy saving technologies has not been induced in response to increased energy prices

infrastructure investment and canadian manufacturing productivity this paper examines the relationship between canadian public infrastructure and private output using a constant elasticity and substitution translog ces tl cost model to describe the interaction of the public and private sectors the ces tl was first specified by pollak et al 1984 we find public capital a substitute for private capital within the canadian manufacturing sector additionally the services of public capital enhance the productivity of private capital canadian manufacturing costs are characterized by economies of scale indicating that less than optimal plant sizes dominated canadian manufacturing sector during the study period advances in disembodied technical progress are also indicated

generation and distribution of the total factor productivity gains in us industries abstractthis study estimates productivity gains and their distribution among inputs and outputs for 63 american industries over the period 1987 2012 using the traditional surplus accounting method the total factor productivity tfp growth rates are divided into their price change components in order to determine the stakeholders who do or do not receive price advantages an initial analysis showed that tfp of us industries increased at an average trend of 0 8 and established that remunerations to employees and firms profitability constituted 49 and 39 respectively of the accumulated economic surplus from the productivity gains suppliers of intermediate inputs retained 12 1 of the surplus finally customers equipment and structure providers were the losers in the distribution of economic surplus via respectively a significant growth of relative final demand prices and a substantial price decrease of these assets a second step analysis underlined that industries with high tfp growth rates main

are purchased information services underused in manufacturing evidence from japan korea and taiwan macro production functions which include purchased information services as an intermediate input are estimated for the manufacturing sectors of japan korea and taiwan the aim is to assess the degree of suboptimal use of this input similar previous studies mainly concentrated on the us using single equation estimation methods using a translog function approach the results in this study seems to indicae hat purchased information services are used suboptimally in the manufacturing sectors of all three economies the largest suboptimal use is observed in korea economic policies fostering the development of information service industries might therefore be more urgent in nics than in developed economies however out results are subject to the assumption of perfect competition in product and factor markets

factor and fuel substitution in china s iron steel industry evidence and policy implications climate change which is induced from energy consumption and co2 emissions has got people s attention hence many strategies and ways are being adopted to mitigate co2 emissions energy substitution is crucial to the promotion of energy conservation and co2 emissions reduction the purpose of this paper is to estimate both inter factor and inter fuel substitution in china s iron steel industry during the period 1985 2011 empirical results show several conclusions for china s iron steel industry 1 own price elasticity of energy is negative so increase in energy price will reduce energy input 2 energy and capital and energy and labor are substitutes and the substitution in energy capital is relatively stronger 3 though coal oil and electricity are also substitutes the substitution effect is not so obvious because of pricing distortions in china the driving forces of energy efficiency change are further discussed and the results show that technology progress is the key factor determining energy intensity therefore market oriented reforms in terms of energy prices improvement in energy substitution including inter factor and inter fuel substation and promotion of energy saving technologies are important means for ensuring future energy conservation and co2 emissions reduction practices in china s iron steel sector

the impacts of energy prices on energy intensity evidence from china in this paper we present a review of the deregulation of energy prices in china between 1985 and 2004 and assess the impacts of changes in energy prices on aggregate energy intensity and coal oil electricity intensity we used time series data to provide estimates of energy price elasticities empirical results showed that 1 the own price elasticities of coal oil and aggregate energy were negative in periods both before and after 1995 implying that higher relative prices of different energy types lead to the decrease in coal oil and aggregate energy intensities however the positive own price elasticity of electricity after 1995 probably indicates that the price effect was weaker than other factors such as income effect and population effect 2 the impacts of energy prices were asymmetric over time 3 sectoral adjustment also drove the decrease in aggregate energy intensity although raising energy prices to boost efficiency of energy use seems to be an effective policy tool other policy implications concerned with energy prices such as energy supply security and fuel poverty must also be considered

the macroeconomic merits of a marginal employment subsidy recent projections by the institute for employment research show that high levels of unemployment are likely to persist throughout the remainder of the decade with this in mind it is relevant to consider the relative merits of alternative policy measures designed to improve the situation and in an article in this journal layard and nickell i980 have proposed a marginal employment subsidy on the basis of a simple algebraic model of the economy this paper presents a further assessment of this type of marginal employment subsidy highlighting the various key assumptions necessary for it to be effective the essence of the marginal employment scheme outlined by layard and nickell henceforth ln is that firms would be entitled to receive a subsidy for each additional job created above a given reference level of employment their method of analysis is to set up an algebraic model using a set of plausible parameters they use three alternative sets of parameters which they term pessimistic reasonable and optimistic and their results show that the relative efficacy of the mes scheme depends very much on which set is most plausible they conclude that their analysis provides some support for a marginal employment subsidy and that it compares quite favourably with alternative means of stimulating employment and in particular with the policy of a general employment subsidy they justify their algebraic approach as follows