Economic Growth and the Transition from Traditional to Modern Energy in Sweden
We examine the role of substitution from traditional to modern energy carriers and of differential rates of innovation in the use of each of these in Sweden from 1850 to 1950. We use a simple growth model with a nested CES production function and exogenous factor augmenting technological change and carry out a growth accounting decomposition based on the econometric results. Energy and energy augmenting technological change contributed more than a third of the economic growth in this period. Even though the rate of technical change was much larger for modern energy, innovation in the use of traditional energy carriers contributed more to growth between 1850 and 1890, since the cost share of traditional energy was so much larger than that of modern energy in that period. However, after 1890 we find that modern energy contributed much more to economic growth than traditional energy, but increasingly labor augmenting technological change and capital accumulation became the most important drivers of growth in the final decades of the period.
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 2601|
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: http://cama.crawford.anu.edu.au
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harty D. Saunders, 1992. "The Khazzoom-Brookes Postulate and Neoclassical Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 131-148.
- Petith, Howard, 2008. "Land, technical progress and the falling rate of profit," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 687-702, June.
- Astrid Kander & Paul Warde, 2011. "Energy availability from livestock and agricultural productivity in Europe, 1815–1913: a new comparison," Economic History Review, Economic History Society, vol. 64(1), pages 1-29, February.
- Mayumi, Kozo, 1991. "Temporary emancipation from land: from the industrial revolution to the present time," Ecological Economics, Elsevier, vol. 4(1), pages 35-56, October.
- Ayres, Robert U. & Warr, Benjamin, 2005. "Accounting for growth: the role of physical work," Structural Change and Economic Dynamics, Elsevier, vol. 16(2), pages 181-209, June.
- Gales, Ben & Kander, Astrid & Malanima, Paolo & Rubio, Mar, 2007. "North versus South: Energy transition and energy intensity in Europe over 200 years," European Review of Economic History, Cambridge University Press, vol. 11(02), pages 219-253, August.
- Daron Acemoglu, 2001.
"Directed Technical Change,"
NBER Working Papers
8287, National Bureau of Economic Research, Inc.
- Iñaki Iriarte-Goñi & María Isabel Ayuda, 2011.
"Not Only Subterranean Forests: Wood Consumption And Economic Development In Britain (1850-1938),"
Documentos de Trabajo (DT-AEHE)
1107, Asociacion Espa–ola de Historia Economica.
- Iriarte-Goñi, Iñaki & Ayuda, María-Isabel, 2012. "Not only subterranean forests: Wood consumption and economic development in Britain (1850–1938)," Ecological Economics, Elsevier, vol. 77(C), pages 176-184.
- Harley, C. Knick & Crafts, N.F.R., 2000. "Simulating the Two Views of the British Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 60(03), pages 819-841, September.
- Ernst Berndt & Charles Kolstad & Jong-Kun Lee, 1993. "Measuring the Energy Efficiency and Productivity Impacts of Embodied Technical Change," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 33-56.
- León-Ledesma, Miguel A. & McAdam, Peter & Willman, Alpo, 2009.
"Identifying the elasticity of substitution with biased technical change,"
Working Paper Series
1001, European Central Bank.
- Miguel A. León-Ledesma & Peter McAdam & Alpo Willman, 2010. "Identifying the Elasticity of Substitution with Biased Technical Change," American Economic Review, American Economic Association, vol. 100(4), pages 1330-57, September.
- Stern, David & Enflo, Kerstin, 2013.
"Causality Between Energy and Output in the Long-Run,"
Lund Papers in Economic History
126, Department of Economic History, Lund University.
- Stern, David I. & Enflo, Kerstin, 2013. "Causality between energy and output in the long-run," Energy Economics, Elsevier, vol. 39(C), pages 135-146.
- David I. Stern & Kerstin Enflo, 2013. "Causality Between Energy and Output in the Long-Run," CAMA Working Papers 2013-01, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Temin, Peter, 1997. "Two Views of the British Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 57(01), pages 63-82, March.
- Clark, Gregory & Jacks, David, 2007.
"Coal and the Industrial Revolution, 1700 1869,"
European Review of Economic History,
Cambridge University Press, vol. 11(01), pages 39-72, April.
- David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-61, May.
- Kim, H Youn, 1992. "The Translog Production Function and Variable Returns to Scale," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 546-52, August.
- Roger Fouquet, 2011. "Divergences in Long-Run Trends in the Prices of Energy and Energy Services," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(2), pages 196-218, Summer.
- Allen,Robert C., 2009.
"The British Industrial Revolution in Global Perspective,"
Cambridge University Press, number 9780521868273, November.
- Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521687850, November.
- Iriarte-Goñi, Iñaki & Ayuda, Maria Isabel, 2008. "Wood and industrialization: Evidence and hypotheses from the case of Spain, 1860-1935," Ecological Economics, Elsevier, vol. 65(1), pages 177-186, March.
- Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521766937, November.
- Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
- Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521131858, November.
When requesting a correction, please mention this item's handle: RePEc:een:camaaa:2013-65. 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: (Cama Admin)
If references are entirely missing, you can add them using this form.