IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v34y2012i4p1208-1213.html
   My bibliography  Save this article

Capital stock-labor-energy substitution and production efficiency study for China

Author

Listed:
  • Su, Xuanming
  • Zhou, Weisheng
  • Nakagami, Ken'Ichi
  • Ren, Hongbo
  • Mu, Hailin

Abstract

This study estimates the elasticities of substitution for China from 1953 to 2006 by the two-level constant elasticity of substitution (CES) production function with three factor inputs: capital stock, labor and energy. A technological change rate and non-constant returns to scale are under considered. All possible combinations and two other subdivided periods are carried out respectively and their technological change rates, elasticities of substitution and returns to scale are found. This study also provides an analysis of production efficiency by using marginal productivity of specific factor input according to the estimated results and distinguishes the marginal productivities deriving from the three different combinations. It suggests that the decision-makers of China need to consider the effects of different factor inputs on GDP growth.

Suggested Citation

  • Su, Xuanming & Zhou, Weisheng & Nakagami, Ken'Ichi & Ren, Hongbo & Mu, Hailin, 2012. "Capital stock-labor-energy substitution and production efficiency study for China," Energy Economics, Elsevier, vol. 34(4), pages 1208-1213.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1208-1213
    DOI: 10.1016/j.eneco.2011.11.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988311002763
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kemfert, Claudia, 1998. "Estimated substitution elasticities of a nested CES production function approach for Germany," Energy Economics, Elsevier, vol. 20(3), pages 249-264, June.
    2. Chang, Kuo-Ping, 1994. "Capital-energy substitution and the multi-level CES production function," Energy Economics, Elsevier, vol. 16(1), pages 22-26, January.
    3. Li, Qi, 2000. "Semiparametric Methods In Econometrics," Econometric Theory, Cambridge University Press, vol. 16(04), pages 611-617, August.
    4. Anil Markandya & Suzette Pedroso-Galinato, 2007. "How substitutable is natural capital?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 297-312, May.
    5. Rainer Klump & Peter McAdam & Alpo Willman, 2007. "Factor Substitution and Factor-Augmenting Technical Progress in the United States: A Normalized Supply-Side System Approach," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 183-192, February.
    6. K. Sato, 1967. "A Two-Level Constant-Elasticity-of-Substitution Production Function," Review of Economic Studies, Oxford University Press, vol. 34(2), pages 201-218.
    7. Prywes, Menahem, 1986. "A nested CES approach to capital-energy substitution," Energy Economics, Elsevier, vol. 8(1), pages 22-28, January.
    8. Dupuy Arnaud, 2006. "Hicks Neutral Technical Change Revisited: CES Production Function and Information of General Order," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(2), pages 1-26, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:energy:v:145:y:2018:i:c:p:582-591 is not listed on IDEAS
    2. Jin Zhang and David C. Broadstock, 2016. "The Causality between Energy Consumption and Economic Growth for China in a Time-varying Framework," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    3. Yan, Huijie, 2015. "Provincial energy intensity in China: The role of urbanization," Energy Policy, Elsevier, vol. 86(C), pages 635-650.
    4. Valeria Costantini & Francesco Crespi & Elena Paglialunga, 2018. "Capital-energy substitutability in manufacturing sectors: methodological and policy implications," Departmental Working Papers of Economics - University 'Roma Tre' 0234, Department of Economics - University Roma Tre.
    5. Lukáš Rečka, 2013. "Estimation of the elasticity of substitution of production factors in CEE economies," EcoMod2013 5420, EcoMod.
    6. Su, Xuanming & Zhou, Weisheng & Sun, Faming & Nakagami, Ken'Ichi, 2014. "Possible pathways for dealing with Japan's post-Fukushima challenge and achieving CO2 emission reduction targets in 2030," Energy, Elsevier, vol. 66(C), pages 90-97.
    7. repec:eee:energy:v:129:y:2017:i:c:p:246-254 is not listed on IDEAS
    8. Valeria Costantini & Elena Paglialunga, 2014. "Elasticity of substitution in capital-energy relationships: how central is a sector-based panel estimation approach?," SEEDS Working Papers 1314, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2014.
    9. Zhang, Dayong & Broadstock, David C. & Cao, Hong, 2014. "International oil shocks and household consumption in China," Energy Policy, Elsevier, vol. 75(C), pages 146-156.
    10. Lin, Boqiang & Long, Houyin, 2016. "Input substitution effect in China׳s chemical industry: Evidences and policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1617-1625.
    11. Hu, Baiding, 2014. "Measuring plant level energy efficiency in China's energy sector in the presence of allocative inefficiency," China Economic Review, Elsevier, vol. 31(C), pages 130-144.
    12. repec:eee:eneeco:v:64:y:2017:i:c:p:118-130 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1208-1213. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eneco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.