Substitute or complement? Assessing renewable and non-renewable energy in OCED countries

Surender Kumar, Hidemichi Fujii and Shunsuke Managi

No SDES-2014-8, Working Papers from Kochi University of Technology, School of Economics and Management

Abstract: The elasticity of inter fuel substitution between renewable and non-renewable energy is key to establishing effective climate change policy. This is the first study to estimate the elasticity of substitution between different fossil fuels and renewable resources. We used twelve manufacturing industry-level datasets for the OECD countries from 1995 to 2009. We found a complementary relationship from non-renewable energy to renewable energy in eight industries, whereas a substitute relationship was maintained for four industries. In particular, the food and pulp industries had a strong complementary relationship.

Keywords: Fossil fuels; Renewable energy; Morishima elasticity of substitution; Directional distance function; shadow price of CO2; OECD countries (search for similar items in EconPapers)
JEL-codes: L60 Q20 Q42 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-10, Revised 2014-10
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in SDE Series, October 2014, pages 1-32

Downloads: (external link)
http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2014-8.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kch:wpaper:sdes-2014-8

Access Statistics for this paper

More papers in Working Papers from Kochi University of Technology, School of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Sachiko Minami ().