Interfuel Substitution: A Meta‐Analysis
AbstractAs is the case with capital-energy substitution, interfuel substitutability has been of longstanding interest to the energy economics and policy community. However, no quantitative meta-analysis has yet been carried out of this literature. This paper fills this gap by analyzing a broad sample of studies of interfuel substitution in the industrial sector, manufacturing industry or subindustries, or macro-economy of a variety of developed and developing economies. Publication bias is controlled for by including the primary study sample size and the influence factor of the journal in the meta-regression. Results for the shadow elasticity of substitution between coal, oil, gas, and electricity for forty-five primary studies show that there are easy substitution possibilities between all the fuel pairs with the exception of gas and electricity. Model and data specification issues very significantly affect the estimates derived by each individual study. While publication bias does not seem to be present there is a relationship between sample size and the value of the elasticities with larger sample studies finding greater values of the elasticities.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economic Surveys.
Volume (Year): 26 (2012)
Issue (Month): 2 (04)
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Other versions of this item:
- Stern, David I., 2009. "Interfuel Substitution: A Meta-Analysis," Research Reports 94882, Australian National University, Environmental Economics Research Hub.
- David I. Stern, 2009. "Interfuel Substitution: A Meta-Analysis," Departmental Working Papers 2009-06, The Australian National University, Arndt-Corden Department of Economics.
- David I.Stern, 2009. "Interfuel Substitution: A Meta Analysis," Environmental Economics Research Hub Research Reports 0933, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- Stern, David I., 2009. "Interfuel Substitution: A Meta-Analysis," MPRA Paper 13734, University Library of Munich, Germany.
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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