IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

An econometric model of production with endogenous improvement in energy efficiency, 1970-1995

  • Klaus Conrad
Registered author(s):

    The purpose of this paper is to introduce a modification of a standard four input production process where energy is used in an inefficient way due partly to unnecessary waste of energy. In this production process, R&D investment is an additional input in order to improve energy efficiency. It closes the gap between energy purchased and energy used effectively. The more is invested, the less is the waste of energy. With the cost and benefit of R&D investment incorporated in our model of the firm, we analyse the impact of an energy tax on R&D effort, on output and on the waste of energy. The model is implemented empirically by choosing a translog cost function and a set of first-order conditions, using data for the German chemical industry, 1970-1995. In a simulation study based on higher energy prices we found outsourcing as the consequent reaction of the firm- more material is used and less of energy, labour, and capital, given the unchanged output level. There is no indication of a double dividend in terms of environmental improvement as well as higher demand for labour on the industry level calling for a computable general equilibrium approach in order to answer this open question.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404290
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 32 (2000)
    Issue (Month): 9 ()
    Pages: 1153-1160

    as
    in new window

    Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1153-1160
    Contact details of provider: Web page: http://www.tandfonline.com/RAEC20

    Order Information: Web: http://www.tandfonline.com/pricing/journal/RAEC20

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1153-1160. 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: (Michael McNulty)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.