Fossil fuel producing economies have greater potential for industrial interfuel substitution

Jevgenijs Steinbuks and Badri G Narayanan ()

Energy Economics, 2015, vol. 47, issue C, 168-177

Abstract: This study analyzes industrial interfuel substitution in an international context using a large unbalanced panel dataset of 63 countries. We find that compared to other countries fossil fuel producing economies have higher short-term interfuel substitution elasticities. This difference increases further in the long run as fossil fuel producing countries have a considerably longer adjustment of their fuel-using capital stock. These results imply lower economic cost for policies aimed at climate abatement and more efficient utilization of energy resources in energy-intensive economies.

Keywords: Dynamic linear logit; Fossil fuel production; Industrial energy demand; International interfuel substitution (search for similar items in EconPapers)
JEL-codes: L71 Q41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:47:y:2015:i:c:p:168-177

DOI: 10.1016/j.eneco.2014.11.001

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