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Energy and Capital: Further Exploration of E-K Interactions and Economic Performance

Catherine Morrison Paul

The Energy Journal, 1993, vol. Volume 14, issue Number 1, 217-244

Abstract: This paper explores some interactions between energy and capital that affect firms' productive performance through indirect effects of energy price changes. Different capital stocks (including high-tech capital) and different U.S. manufacturing industries (including high and low energy- and capital-intensive industries) are examined. This allows evaluation of cross-effects, expressed as the impact of changing capital composition on energy conservation (computer induced energy conservation) and energy price effects on capital returns (including composition, utilization and scale). The resulting effects on productivity growth are then considered, through the impact of energy price changes both on the demand and cost share of energy, and on the measured returns to different types of capital.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 1993
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Handle: RePEc:aen:journl:1993v14-01-a09