EconPapers    
Economics at your fingertips  
 

Energy-Saving Technical Change

John Hassler (), Per Krusell () and Conny Olovsson

No 1529, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: We estimate an aggregate production function with constant elasticity of substitution between energy and a capital/labor composite using U.S. data. The implied measure of energy-saving technical change appears to respond strongly to the oil-price shocks in the 1970s and has a negative medium-run correlation with capital/labor-saving technical change. Our findings are suggestive of a model of directed technical change, with low short-run substitutability between energy and capital/labor but significant substitutability over longer periods through technical change. We construct such a model, calibrate it based on the historical data, and use it to discuss possibilities for the future.

Pages: 41 pages
Date: 2015-11
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2015-29-Paper.pdf (application/pdf)

Related works:
Working Paper: Energy-saving technical change (2015) Downloads
Working Paper: Energy-Saving Technical Change (2012) Downloads
Working Paper: Energy-Saving Technical Change (2012) Downloads
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:cfm:wpaper:1529

Access Statistics for this paper

More papers in Discussion Papers from Centre for Macroeconomics (CFM) Contact information at EDIRC.
Bibliographic data for series maintained by Martin Hannon ().

 
Page updated 2020-07-10
Handle: RePEc:cfm:wpaper:1529