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The Treatment of Intermediate Materials in the Estimation of the Demand for Energy: The Case of U.S. Manufacturing, 1947-1971

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  • Richard G. Anderson

Abstract

Continuing increases in the price of energy have stimulated extensive research on energy demand and factor substitution in the U.S. economy. The manufacturing segment of the U.S. economy consumes approximately one-fourth of aggregate U.S. energy if measured by Btu consumption, and about 40 percent if measured by the Btu content of the fuel used for electric power generation (see Table 1). Hence, the manufacturing sector has been specifically targeted as a source of potential reductions in energy demand in the Energy Policy and Conservation Act of 1975, This paper was completed while the author was Assistant Professor of Economics at Michigan State University. Acknowledgment is given to Ernst Berndt, Robert Engle, Franklin Fisher. Jerry Hausman, James Johannes, Robert Pindyck, and Robert Rasche for helpful comments. The author retains responsibility for errors.

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  • Richard G. Anderson, 1980. "The Treatment of Intermediate Materials in the Estimation of the Demand for Energy: The Case of U.S. Manufacturing, 1947-1971," The Energy Journal, , vol. 1(4), pages 75-94, October.
    • Handle: RePEc:sae:enejou:v:1:y:1980:i:4:p:75-94
    DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No4-5
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    References listed on IDEAS

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    1. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    2. Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-957, Sept.-Nov.
    3. Robert S. Pindyck, 1979. "The Structure of World Energy Demand," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661772, December.
    4. Denny, Michael & Fuss, Melvyn A, 1977. "The Use of Approximation Analysis to Test for Separability and the Existence of Consistent Aggregates," American Economic Review, American Economic Association, vol. 67(3), pages 404-418, June.
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