Economic growth and interfactor/interfuel substitution in Korea

China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution

“…It is typical in the energy economics literature to employ a translog cost function to estimate energy demand elasticities (Cho, et al, 2004;Berndt and Wood, 1979;Debertin, et al, 1990;Christopoulos and Tsionas, 2002;Welsch and Ochsen, 2005). Moreover, the translog cost function is a convenient specification of duality theory and as a second order approximation it allows one to avoid the need to specify a particular production function (Stratopoulos et al, 2000).…”

“…We can then assume that energy, capital and labour are homothetic in their components so that we can specify a homothetic fuel cost share equation. Thus, a second-order approximation of cost as a function of time, the logged input price and log output, is used for the non-homothetic translog total factor cost function: (1) where ln indicates the natural logarithm; TC is the equilibrium total cost; P jt (P it ) denotes the price of input factor j (i) at time T; Y t is the level of output in period T; and t denotes 1 Materials can also be included as a factor although most studies (for example, Caloghirou et al, 1997;Cho et al, 2004) are forced to exclude them because data on materials use are less easily available than data on capital, energy and labour. We also exclude materials in the results that follow since their use is not reported in the Chinese statistics that we rely on.…”

“…Likewise, the Allen partial elasticities of substitution ( ij σ ) between fuels and conditional own-price elasticities ( ii η ) and conditional cross-price elasticities ( ij η ) of fuel demand can be estimated by equations (7) and (8) using the estimated parameters from equation (6). Total own-and cross-price elasticities of fuel demand can be estimated as follow (Pindyck, 1979;Cho et al, 2004):…”

“…represents the magnitude of the feedback effect between the interfactor and interfuel substitution resulting from an individual fuel price change (Cho et al, 2004).…”

A mixed complementarity model for the US biofuel market with federal policy interventions

“…[22][23][24][25][26][27] Note that there has been several eff orts to model fuel markets. [28][29][30][31] None of these eff orts have focused on developing a national biofuel market model that (i) could be useable as a tool to investigate least cost compliance strategies on an annual basis, (ii) investigate details of how RIN prices are established, and (iii) includes details of tax policy that could enable a detailed study of tax credit incidence. Although this last point is left as future research, our model is set up in a way to easily do this.…”