Research on energy-saving effect of technological progress based on Cobb-Douglas production function
Energy issues receive more and more attention these days. And it is considered that technological progress is an essential approach to save energy. This essay is to analyze the relation between energy intensity and technological progress by Cobb-Douglas production function in which energy, labor, capital and technological progress are taken as independent variables. It proves that the growth of output per capital and output per labor will increase energy intensity while technological progress will decrease energy intensity. Empirical research on Chinese industry is used here to indicate technological progress greatly decreases energy intensity. Because of the interferences of Asian financial crisis, there is something abnormal in the data. So in the empirical research, average weaken buffer operator (ABWO) is applied to weaken the interference of Asian financial crisis to the fixed assets, energy and value added. The results of the empirical research show that technological progress decreases energy intensity of Chinese industry an average of 6.3% every year in China.
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