Asymmetric substitutability between energy and capital: Evidence from the manufacturing sectors in 10 OECD countries

Kim, Jihyo; Heo, Eunnyeong

doi:10.1016/j.eneco.2013.06.014

Cited by 67 publications

(24 citation statements)

References 36 publications

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“…Studies such as Berndt and Wood (1975) and Hudson and Jorgenson (1978) reached the conclusion that there was a complementary relationship between the factors on the basis of short-term time series data. Similar conclusions are produced by Fuss (1977); Berndt and Khaled (1979); Anderson (1981); Prywes (1986); Arnberg and Bjørner (2007); Nguyen and Streitwieser (2008) and Kim and Heo (2013). Another view is presented by David and Moroney (1975); Griffin and Gregory (1976) and Halvorsen (1977).…”

Section: Literature Reviewsupporting

confidence: 62%

Analyzing inter-factor substitution and technical progress in the Chinese agricultural sector

Lin

Fei

2015

European Journal of Agronomy

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Section: Literature Reviewsupporting

confidence: 62%

Analyzing inter-factor substitution and technical progress in the Chinese agricultural sector

Lin

Fei

2015

European Journal of Agronomy

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“…This allows us to compute the stock of relevant green innovation for each industrial sector in our set of OECD countries. Using production data at the industry level from the EU-KLEMS database, we estimate a translog production function following the (widely-used) framework developed by Berndt and Wood (1975) (see for example Haller and Hyland, 2014;Kim and Heo, 2013;Arnberg and Bjorner, 2007) to measure the impact of green patents on energy intensity per sector. We find that an increase in green patenting activities is associated with a reduction in energy intensity in most of the sectors in our sample, with a median elasticity of -0.03.…”

Section: Introductionmentioning

confidence: 99%

The impact of green innovation on energy intensity: An empirical analysis for 14 industrial sectors in OECD countries

2018

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This paper analyses the impact of green innovation on energy intensity in a set of 14 industrial sectors in 17 OECD countries over the 1975-2005 period. We create a stock of green patents for each industrial sector and estimate a translog cost function to measure the impact of green innovation on energy intensity, next to other factors such as input substitution and autonomous technical change. We find that green innovation has contributed to the decline in energy intensity in the majority of sectors: the median elasticity of energy intensity with respect to green patenting is estimated at-0.03 in our sample. Hence, a 1% increase in green patenting activities in a given sector is associated with a 0.03% decline in energy intensity. The magnitude of the effect is larger in energy-intensive sectors and in more recent years. We also find that the impact of an additional green patent on energy intensity is larger than an average non-green patent. Our results are robust to alternative definitions of green patents.

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“…In research of substitutability between energy and capital in the manufacturing sectors, Kim and Heo conclude that industries prefer costs for energy rather than capital investments more frequently than vice versa and this asymmetric substitutability arises from much higher capital costs than energy costs in most of the countries. According to Kim and Heo, these results demonstrate that the implementation of energy efficiency measures have not been introduced despite increased energy prices [24].…”

Section: Introductionmentioning

confidence: 94%

Energy Efficiency Obligations and Subsidies to Energy Intensive Industries in Latvia

Locmelis

Bariss

Blumberga

2019

Environmental and Climate Technologies

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The European Union’s climate and energy policy for 2030 sets ambitious targets and will challenge current energy use patterns. At the same time, policy objectives are to maintain energy affordable for business and consumers, which means that energy and climate goals should be achieved in the most cost-effective way. There is a well-known energy efficiency gap between effectively implemented energy efficiency measures and potentially economically viable ones. The authors have made a statistical analysis of the energy costs intensity of manufacturing industries in Latvia compared to other Baltic Sea countries and have consented that the three most energy consuming manufacturing industries in Latvia show a higher share of energy costs in total production costs than in their peers over a long period of time, indicating the clearly visible possibilities for energy efficiency improvements. At the same time, Latvian energy policy provides subsidies for energy-intensive manufacturing consumers by reimbursing part of their actual electricity costs. The paper analyses the amounts of reimbursements and their breakdown by manufacturing industries, identifying the most important beneficiaries of subsidies. The authors argue that beneficiaries should direct these subsidies to further energy efficiency improvements.

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Asymmetric substitutability between energy and capital: Evidence from the manufacturing sectors in 10 OECD countries

Cited by 67 publications

References 36 publications

Analyzing inter-factor substitution and technical progress in the Chinese agricultural sector

Analyzing inter-factor substitution and technical progress in the Chinese agricultural sector

The impact of green innovation on energy intensity: An empirical analysis for 14 industrial sectors in OECD countries

Energy Efficiency Obligations and Subsidies to Energy Intensive Industries in Latvia

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