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Interfuel Substitution: A Meta‐Analysis

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  • David I. Stern

Abstract

As 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 Info

Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 26 (2012)
Issue (Month): 2 (04)
Pages: 307-331

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Handle: RePEc:bla:jecsur:v:26:y:2012:i:2:p:307-331

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Interfuel Substitution: A Meta-Analysis - Accepted for Publication
    by David Stern in Stochastic Trend on 2010-08-10 10:29:00
  2. The Environment and Directed Technical Change: Acemoglu et al.
    by David Stern in Stochastic Trend on 2010-04-28 08:28:00
  3. Revise and Resubmit...
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  4. Energy Quality
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  8. Why Most Published Research Results are False
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  9. Designing a Job Talk
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  10. Interfuel Substitution and the Costs of Climate Change Policy
    by David Stern in Stochastic Trend on 2009-07-03 01:38:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Timothy J. Considine & Edward J. M. Manderson, 2013. "The Cost of Solar-Centric Renewable Portfolio Standards," The School of Economics Discussion Paper Series 1323, Economics, The University of Manchester.
  2. Thomas Michielsen, 2013. "Brown Backstops Versus the Green Paradox," OxCarre Working Papers 108, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  3. Lin, Boqiang & Wesseh, Presley K., 2013. "Estimates of inter-fuel substitution possibilities in Chinese chemical industry," Energy Economics, Elsevier, vol. 40(C), pages 560-568.
  4. Adams, Philip D. & Parmenter, Brian R., 2013. "Computable General Equilibrium Modeling of Environmental Issues in Australia," Handbook of Computable General Equilibrium Modeling, Elsevier.
  5. Jack Gregory & David I. Stern, 2012. "Fuel Choices in Rural Maharashtra," CCEP Working Papers 1207, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  6. Papageorgiou, Chris & Saam, Marianne & Schulte, Patrick, 2013. "Elasticity of substitution between clean and dirty energy inputs: A macroeconomic perspective," ZEW Discussion Papers 13-087, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Stern, David I., 2010. "Energy quality," Ecological Economics, Elsevier, vol. 69(7), pages 1471-1478, May.
  8. Martin de Wit & Matthew Kuperus Heun & Douglas J Crookes, 2013. "An overview of salient factors, relationships and values to support integrated energy-economic systems dynamic modelling," Working Papers 02/2013, Stellenbosch University, Department of Economics.
  9. Ivan Diaz-Rainey & Mathias Siems & John K. Ashton, 2011. "The financial regulation of energy and environmental markets," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 19(4), pages 355-369, November.
  10. Beckman, Jayson & Hertel, Thomas & Tyner, Wallace, 2011. "Validating energy-oriented CGE models," Energy Economics, Elsevier, vol. 33(5), pages 799-806, September.
  11. Dr. Ulrike Lehr & Dr. Christian Lutz & Kirsten Wiebe, 2011. "Medium Term Economic Effects of Peak Oil Today," GWS Discussion Paper Series 11-3, GWS - Institute of Economic Structures Research.
  12. Yingying Lu & David I. Stern, 2014. "Substitutability and the Cost of Climate Mitigation Policy," CAMA Working Papers 2014-28, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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