Threshold effects of energy price changes

Daan van Soest, Gerard Kuper and Jan Jacobs

No 00C31, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

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

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

Downloads: (external link)
http://irs.ub.rug.nl/ppn/240565746 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://irs.ub.rug.nl/ppn/240565746 [302 Found]--> https://irs.ub.rug.nl/ppn/240565746 [302 Found]--> https://www.rug.nl/research/portal/publications/pub(55ba3abf-667c-4cd9-9e87-4f28997fba3f).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(55ba3abf-667c-4cd9-9e87-4f28997fba3f).html)

Related works:
Working Paper: Threshold Effects of Energy Price Changes (2000)
Working Paper: Threshold effects of energy price changes (2000)
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:rugsom:00c31

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().