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SSRN Electronic Journal
Article . 2011 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2011
Data sources: EconStor
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Modeling Energy and Non-Energy Substitution - A Survey of Elasticities

Authors: Frondel, Manuel;

Modeling Energy and Non-Energy Substitution - A Survey of Elasticities

Abstract

Estimating the degree of substitution between energy and non-energy inputs is key for any evaluation of environmental and energy policies. Yet, given the large variety of substitution elasticities, the central question arises as to which measure would be most appropriate. Apparently, ALLEN’s elasticities of substitution have been the most-used measures in applied production analysis. In line with Frondel (2004), this paper argues that cross-price elasticities are preferable for many practical purposes. This conclusion is based on a survey of classical substitution measures, such as those from ALLEN, MORISHIMA, and MCFADDEN. The survey also highlights the fact that cross-price elasticities are their essential ingredients.

Keywords

Morishima elasticities, Substitutionselastizität, Energiesubstitution, ddc:330, Allen partial elasticities, Cross-price elasticities,Allen partial elasticities,Morishima elasticities, Cross-price elasticities; Allen partial elasticities; Morishima elasticities, Cross-price elasticities, D2, C3, Theorie, jel: jel:D2, jel: jel:C3

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
bronze