EconPapers    
Economics at your fingertips  
 

Threshold effects of energy price changes

Daan van Soest (), Gerard Kuper () and Jan Jacobs ()

No 200007, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: This paper presents a theoretical model emphasising energy investments’ characteristics of uncertainty and irreversibility. The theoretical model suggests threshold effects. Firms are induced to substitute away from energy only if prices of energy exceed a certain threshold level and they reverse the technology only if energy prices are low enough. Estimating a simple investment relation using panel data for the Dutch economy, we find evidence for threshold effects.

Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://irs.ub.rug.nl/ppn/241226228 (application/pdf)

Related works:
Working Paper: Threshold Effects of Energy Price Changes (2000) Downloads
Working Paper: Threshold effects of energy price changes (2000) 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:gro:rugccs:200007

Access Statistics for this paper

More papers in CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().

 
Page updated 2018-06-19
Handle: RePEc:gro:rugccs:200007