| Type | Journal Article - Energy economics |
| Title | Substitution and price elasticity estimates using inter-country pooled data in a translog cost model |
| Author(s) | |
| Volume | 28 |
| Issue | 5 |
| Publication (Day/Month/Year) | 2006 |
| Page numbers | 706-719 |
| URL | http://escholarship.org/uc/item/4g89926w |
| Abstract | Pooled data across several developing countries and the U. S. were used to estimate longrun substitution and price elasticities in a translog framework for the paper, iron and steel, and aggregate manufacturing industries. While the quality of the estimates varies across the several industry-specific models, the results suggest higher values for these elasticities than appear commonly used in integrated assessment models. Estimates of own-price elasticities of energy range from - 0.80 to - 1.76 and are comparable to estimates from previous econometric studies in the context of developed countries (- 0.77 to - 0.87). Substitution elasticities show wider variation across countries and industries. For energy and capital they range from -1.96 to 9.80, for labor and energy from 2.61 to 7.11, and for energy and material from - 0.26 to 2.07. |