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Substitute or complement? Assessing renewable and non-renewable energy in OCED countries

Listed author(s):
  • Surender Kumar

    ()

    (Department of Business Economics, University of Delhi)

  • Hidemichi Fujii

    ()

    (Faculty of Environmental Studies, Nagasaki University)

  • Shunsuke Managi

    ()

    (Graduate School of Environmental Studies, Tohoku University)

The elasticity of inter fuel substitution between renewable and non-renewable energy is key to establishing effective climate change policy. This is the first study to estimate the elasticity of substitution between different fossil fuels and renewable resources. We used twelve manufacturing industry-level datasets for the OECD countries from 1995 to 2009. We found a complementary relationship from non-renewable energy to renewable energy in eight industries, whereas a substitute relationship was maintained for four industries. In particular, the food and pulp industries had a strong complementary relationship.

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File URL: http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2014-8.pdf
File Function: First version, 2014
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Paper provided by Kochi University of Technology, School of Economics and Management in its series Working Papers with number SDES-2014-8.

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Length: 32 pages
Date of creation: Oct 2014
Date of revision: Oct 2014
Publication status: Published in SDE Series, October 2014, pages 1-32
Handle: RePEc:kch:wpaper:sdes-2014-8
Contact details of provider: Phone: 81-887572764
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Web page: http://www.souken.kochi-tech.ac.jp/seido/index.html

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