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Energy as a productive input: The underlying technology for Portugal and Spain

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  • Vega-Cervera, J.A.
  • Medina, J.

Abstract

In the present work we conceptualize energy as a productive input observing its relationship with capital and labor. A translog cost function is used to study the factor demand in the economies of Portugal and Spain, without a priori fixing any given technological structure. We evaluate the underlying technology in each country. We relate the principal energy variables with the technology, verifying econometrically the basic characteristics of the energy markets. The translog function is also tested for separability of inputs. The results include consistent estimates for the Allen and price elasticities by obtaining confidence intervals for elasticity estimators. We find that there is a diversity of complement–substitute relationships between energy and the other factors.

Suggested Citation

  • Vega-Cervera, J.A. & Medina, J., 2000. "Energy as a productive input: The underlying technology for Portugal and Spain," Energy, Elsevier, vol. 25(8), pages 757-775.
  • Handle: RePEc:eee:energy:v:25:y:2000:i:8:p:757-775
    DOI: 10.1016/S0360-5442(00)00014-1
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    Cited by:

    1. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2013. "Fuel Conservation Effect of Energy Subsidy Reform in Iran," IDEC DP2 Series 3-1, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    2. Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Rethinking economy-wide rebound measures: An unbiased proposal," Energy Policy, Elsevier, vol. 38(11), pages 6684-6694, November.
    3. Ma, Hengyun & Oxley, Les & Gibson, John & Kim, Bonggeun, 2008. "China's energy economy: Technical change, factor demand and interfactor/interfuel substitution," Energy Economics, Elsevier, vol. 30(5), pages 2167-2183, September.
    4. Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "Substitution possibilities and determinants of energy intensity for China," Energy Policy, Elsevier, vol. 37(5), pages 1793-1804, May.
    5. Ma, Hengyun & Oxley, Les & Gibson, John, 2010. "China's energy economy: A survey of the literature," Economic Systems, Elsevier, vol. 34(2), pages 105-132, June.
    6. Smyth, Russell & Narayan, Paresh Kumar & Shi, Hongliang, 2011. "Substitution between energy and classical factor inputs in the Chinese steel sector," Applied Energy, Elsevier, vol. 88(1), pages 361-367, January.
    7. Lin, Boqiang & Atsagli, Philip & Dogah, Kingsley E., 2016. "Ghanaian energy economy: Inter-production factors and energy substitution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1260-1269.
    8. repec:eut:wpaper:01 is not listed on IDEAS
    9. Wesseh, Presley K. & Lin, Boqiang & Appiah, Michael Owusu, 2013. "Delving into Liberia's energy economy: Technical change, inter-factor and inter-fuel substitution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 122-130.

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