Capital-Energy Substitution in U.S. Manufacturing

Energy Substitution Effect on China’s Heavy Industry: Perspectives of a Translog Production Function and Ridge Regression

“…In recent years, energy substitution is considered as one of the most important ways to solve the problems of resource constraints and environmental pressures, and also achieve sustainable development [4][5][6][7]. Energy substitution can be specifically divided into inter-fuel substitution and inter-factor substitution.…”

“…However, CPE can only and simply describe the absolute replacement between factors, for example, the change in capital when energy price changes. That is, CPE cannot explain the effect of changes in relative proportion of input factors on the changes in relative price; even if the increase in energy prices lead to a reduction in the demand for capital 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Million tonnes oil equivalent In recent years, energy substitution is considered as one of the most important ways to solve the problems of resource constraints and environmental pressures, and also achieve sustainable development [4][5][6][7]. Energy substitution can be specifically divided into inter-fuel substitution and inter-factor substitution.…”

Capital-Energy Substitution and Shifts in Factor Demand: A Meta-Analysis

“…As argued in Field and Grebenstein (1980), differentiation between physical capital and working capital is a potentially important source of variation in empirical estimates of capital-energy substitution. Physical capital refers to actual machinery, while working capital refers to other types of capital, such as buildings and structures, land, and monetary assets.…”

Owning Up to Uncertainty in Macroeconomics

“…The same may be true for capital goods of different vintages, technology levels, or in sectors with different labor shares under all but improbable conditions (Murray Brown and Winston Chang 1976;Diewert 1980). Energy, but not some other materials, may be a complement for capital and a substitute for labor (Berndt and David Wood 1975;Barry Field and Charles Grebenstein 1980). Hence, there may not be a consistent aggregate of any of the major factors of production, labor, capital and materials.…”