Interfuel Substitution: A Meta-Analysis
As is the case with capital-energy substitution, interfuel substitutability has been of longstanding interest to the energy economics and policy community. However, no quantitative meta-analysis has yet been carried out of this literature. This paper fills this gap by analyzing a broad sample of studies of interfuel substitution in the industrial sector, manufacturing industry or subindustries, or macro-economy of a variety of developed and developing economies. Publication bias is controlled for by including the primary study sample size and the influence factor of the journal in the meta-regression. Results for the shadow elasticity of substitution between coal, oil, gas, and electricity for forty-five primary studies show that there are easy substitution possibilities between all the fuel pairs with the exception of gas and electricity. Model and data specification issues very significantly affect the estimates derived by each individual study. While publication bias does not seem to be present there is a relationship between sample size and the value of the elasticities with larger sample studies finding greater values of the elasticities.
|Date of creation:||03 Mar 2009|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
- Vlachou, A. S. & Samouilidis, E. J., 1986. "Interfuel substitution : Results from several sectors of the Greek economy," Energy Economics, Elsevier, vol. 8(1), pages 39-45, January.
- Truong, Truong P, 1985. "Inter-fuel and Inter-factor Substitution in NSW Manufacturing Industry," The Economic Record, The Economic Society of Australia, vol. 61(174), pages 644-653, September.
- David Stern, 2011.
"Elasticities of substitution and complementarity,"
Journal of Productivity Analysis,
Springer, vol. 36(1), pages 79-89, August.
- David I. Stern, 2004. "Elasticities of Substitution and Complementarity," Rensselaer Working Papers in Economics 0403, Rensselaer Polytechnic Institute, Department of Economics.
- Stern, David I, 2008. "Elasticities of Substitution and Complementarity," MPRA Paper 12454, University Library of Munich, Germany.
- David Stern, 1994. "Accuracy of the translog function," Applied Economics Letters, Taylor & Francis Journals, vol. 1(10), pages 172-174.
- Kim, Bong Chin & Labys, Walter C., 1988. "Application of the translog model of energy substitution to developing countries : The case of Korea," Energy Economics, Elsevier, vol. 10(4), pages 313-323, October.
- Morana, Claudio, 2000. "Modelling Evolving Long-Run Relationships: An Application to the Italian Energy Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(1), pages 72-93, February.
- Bacon, Robert, 1992. "Measuring the possibilities of interfuel substitution," Policy Research Working Paper Series 1031, The World Bank.
- 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.
- John Gibson & Bongguen Kim & Hengyun Ma & Les Oxley, 2008. "China’s Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution," Working Papers in Economics 08/01, University of Canterbury, Department of Economics and Finance.
- Hengyun Ma & Les Oxley & John Gibson & Bongguen Kim, 2009. "China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution," Working Papers 09_02, Motu Economic and Public Policy Research.
- Turnovsky, Michelle & Folie, Michael & Ulph, Alistair, 1982. "Factor Substitutability in Australian Manufacturing with Emphasis on Energy Inputs," The Economic Record, The Economic Society of Australia, vol. 58(160), pages 61-72, March.
- Griffin, James M & Gregory, Paul R, 1976. "An Intercountry Translog Model of Energy Substitution Responses," American Economic Review, American Economic Association, vol. 66(5), pages 845-857, December.
- Uri, Noel D., 1979. "Energy demand and interfuel substitution in India," European Economic Review, Elsevier, vol. 12(2), pages 181-190, April.
- Uri, Noel D., 1982. "Energy demand and interfuel substitution in the United Kingdom," Socio-Economic Planning Sciences, Elsevier, vol. 16(4), pages 157-162.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
- Hall, V. B., 1983. "Industrial sector interfuel substitution following the first major oil shock," Economics Letters, Elsevier, vol. 12(3-4), pages 377-382.
- Hall, V.B., 1983. "Industrial Sector Interfuel Substitution Following the First Major Oil Shock," Working Papers 67, University of Sydney, School of Economics.
- T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, 07.
- Christopoulos, Dimitris K., 2000. "The demand for energy in Greek manufacturing," Energy Economics, Elsevier, vol. 22(5), pages 569-586, October.
- Stern, David I., 2008. "Derivation of the Hicks Elasticity of Substitution from the Input Distance Function," MPRA Paper 12414, University Library of Munich, Germany.
- Agostini, Paola & Botteon, Michele & Carraro, Carlo, 1992. "A carbon tax to reduce CO2 emissions in Europe," Energy Economics, Elsevier, vol. 14(4), pages 279-290, October.
- Borges, Antonio M. & Pereira, Alfredo M., 1992. "Energy demand in Portuguese manufacturing: A two-stage model," Energy, Elsevier, vol. 17(1), pages 61-77.
- Considine, Timothy J., 1989. "Separability, functional form and regulatory policy in models of interfuel substitution," Energy Economics, Elsevier, vol. 11(2), pages 82-94, April.
- Stern, David I., 1997. "Limits to substitution and irreversibility in production and consumption: A neoclassical interpretation of ecological economics," Ecological Economics, Elsevier, vol. 21(3), pages 197-215, June.
- Bousquet, Alain & Ladoux, Norbert, 2006. "Flexible versus designated technologies and interfuel substitution," Energy Economics, Elsevier, vol. 28(4), pages 426-443, July.
- Bousquet, Alain & Ladoux, Norbert, 2004. "Flexible versus Designated Technologies and Inter-Fuel Substitution," IDEI Working Papers 282, Institut d'Économie Industrielle (IDEI), Toulouse.
- Renou-Maissant, Patricia, 1999. "Interfuel competition in the industrial sector of seven OECD countries," Energy Policy, Elsevier, vol. 27(2), pages 99-110, February.
- Urga, Giovanni, 1999. "An application of dynamic specifications of factor demand equations to interfuel substitution in US industrial energy demand," Economic Modelling, Elsevier, vol. 16(4), pages 503-513, December.
- Pindyck, Robert S, 1979. "Interfuel Substitution and the Industrial Demand for Energy: An International Comparison," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 169-179, May.
- Mahmud, Syed F., 2000. "The energy demand in the manufacturing sector of Pakistan: some further results," Energy Economics, Elsevier, vol. 22(6), pages 641-648, December.
- Koetse, Mark J. & de Groot, Henri L.F. & Florax, Raymond J.G.M., 2008. "Capital-energy substitution and shifts in factor demand: A meta-analysis," Energy Economics, Elsevier, vol. 30(5), pages 2236-2251, September.
- Mark J. Koetse & Henri L.F. de Groot & Raymond J.G.M. Florax, 2006. "Capital-Energy Substitution and Shifts in Factor Demand: A Meta-Analysis," Tinbergen Institute Discussion Papers 06-061/3, Tinbergen Institute.
- Olivier de La Grandville & Rainer Klump, 2000. "Economic Growth and the Elasticity of Substitution: Two Theorems and Some Suggestions," American Economic Review, American Economic Association, vol. 90(1), pages 282-291, March.
- Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
- Serletis, Apostolos & Shahmoradi, Asghar, 2008. "Semi-nonparametric estimates of interfuel substitution in U.S. energy demand," Energy Economics, Elsevier, vol. 30(5), pages 2123-2133, September.
- Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
- Perkins, F. C., 1994. "A dynamic analysis of Japanese energy policies : Their impact on fuel switching and conservation," Energy Policy, Elsevier, vol. 22(7), pages 595-607, July.
- Cho, Won G. & Nam, Kiseok & Pagan, Jose A., 2004. "Economic growth and interfactor/interfuel substitution in Korea," Energy Economics, Elsevier, vol. 26(1), pages 31-50, January.
- Lakshmanan, T. R. & Anderson, W. & Jourabchi, M., 1984. "Regional dimensions of factor and fuel substitution in U.S. manufacturing," Regional Science and Urban Economics, Elsevier, vol. 14(3), pages 381-398, August.
- Boys, Kathryn A. & Florax, Raymond J.G.M., 2007. "Meta-Regression Estimates for CGE Models: A Case Study for Input Substitution Elasticities in Production Agriculture," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9683, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Mountain, D. & Hsiao, C., 1988. "A Combined Structural And Flexible Functional Approach For Modeling Energy Substitution," Papers m8815, Southern California - Department of Economics.
- Apostolakis, Bobby E., 1990. "Interfuel and energy-capital complementarity in manufacturing industries," Applied Energy, Elsevier, vol. 35(2), pages 83-107.
- Daniel McFadden, 1963. "Constant Elasticity of Substitution Production Functions," Review of Economic Studies, Oxford University Press, vol. 30(2), pages 73-83.
- Suthep Buranakunaporn & Edward Oczkowski, 2007. "A dynamic econometric model of Thailand manufacturing energy demand," Applied Economics, Taylor & Francis Journals, vol. 39(17), pages 2261-2267.
- Magnus, J.R. & Woodland, A.D., 1987. "Inter-fuel substitution in Dutch manufacturing," Other publications TiSEM ac70331b-1a1e-465e-9ccc-8, Tilburg University, School of Economics and Management.
- T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
- Jones, Clifton T, 1995. "A Dynamic Analysis of Interfuel Substitution in U.S. Industrial Energy Demand," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(4), pages 459-465, October.
- Floros, Nikolaos & Vlachou, Andriana, 2005. "Energy demand and energy-related CO2 emissions in Greek manufacturing: Assessing the impact of a carbon tax," Energy Economics, Elsevier, vol. 27(3), pages 387-413, May.
- Mohamed Nagy Eltony, 2008. "Estimating energy price elasticities for the non-oil manufacturing industries in Kuwait," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 32(2), pages 184-195, 06.
- Fuss, Melvyn A., 1977. "The demand for energy in Canadian manufacturing : An example of the estimation of production structures with many inputs," Journal of Econometrics, Elsevier, vol. 5(1), pages 89-116, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:13734. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.