Energy-Saving Technical Change
John Hassler (),
Per Krusell () and
No 9177, CEPR Discussion Papers from C.E.P.R. Discussion Papers
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.
Keywords: directed technical change; energy saving (search for similar items in EconPapers)
JEL-codes: E0 O3 Q32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-mac
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Working Paper: Energy-Saving Technical Change (2015)
Working Paper: Energy-saving technical change (2015)
Working Paper: Energy-Saving Technical Change (2012)
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