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Energy Crises and Change of Technology

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  • Ilmakunnas, P
  • Torma, H

Abstract

A production model is formulated for the Finnish metal product and machinery industry for studying energy crises-related structural changes. Two models are estimated: a partial static equilibrium model, where capital is treated as a fixed input in the short run, and a dynamic model, where adjustment costs of the capital input are taken into account. Alternative hypotheses of structural change are formulated as gradual parameter shifts. The results show that some of the energy-related parameters have changed over time. Also the contributions of parameter changes and variations in the average values of the variables on the changes in the energy demand elasticities are studied. The most important effect is the strengthening of the energy-saving bias in technical change. Copyright 1994 by John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 9 (1994)
Issue (Month): 3 (July-Sept.)
Pages: 305-20

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Handle: RePEc:jae:japmet:v:9:y:1994:i:3:p:305-20

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Cited by:
  1. Feenstra, Talitha & Kort, Peter M. & de Zeeuw, Aart, 2001. "Environmental policy instruments in an international duopoly with feedback investment strategies," Journal of Economic Dynamics and Control, Elsevier, vol. 25(10), pages 1665-1687, October.
  2. Feenstra, T.L. & Kort, P.M. & Zeeuw, A.J. de, 1997. "Environmental Policy in an International Duopoly: An Analysis of Feedback Investment Strategies," Discussion Paper 1997-43, Tilburg University, Center for Economic Research.

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