Economic effects of the rise in energy prices: what have we learned in ten years
An econometric model used to assess the significance of changing forms of energy, specifically the role of electrification and nonelectrical energy, to productivity growth explains certain trends first described by Schurr and associates. The 1953-1973 decline in real energy prices led to the substitution of energy input for other inputs, a trend that was reversed after the oil shocks of the 1970s, when capital, labor, and materials inputs were substituted for energy to reduce the energy intensity of production. The energy price trends contributed to a marked slowdown in productivity growth. The data support the hypothesis that electrification and productivity growth are interrelated, and that the relation is even stronger for the use of nonelectrical energy and productivity growth. 11 references, 1 table.
- Research Organization:
- Harvard Univ., Cambridge, MA
- OSTI ID:
- 7154650
- Journal Information:
- Am. Econ. Rev.; (United States), Vol. 74:2; Conference: 96. annual meeting of the American Economic Association, San Francisco, CA, USA, 28 Dec 1983
- Country of Publication:
- United States
- Language:
- English
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