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Engineering and econometric interpretations of energy-capital complementarity

Journal Article · · Am. Econ. Rev.; (United States)
OSTI ID:5860339
Econometric studies have recently shown an apparent contradictory evidence regarding substitution possibilities between energy (E) and capital (K). An analytical and empirical interpretation of E-K complementarity consistent with basic microeconomics and with the manufacturing process engineering evidence of E-K substitutability is presented. The notion of utilized capital is developed, and some of the seemingly disparate econometric findings are reconciled. The analysis emphasizes to the authors that care must be taken in interpreting and properly comparing alternative elasticity measures. 42 references. (MCW)
Research Organization:
Univ. of British Columbia, Vancouver
OSTI ID:
5860339
Journal Information:
Am. Econ. Rev.; (United States), Journal Name: Am. Econ. Rev.; (United States) Vol. 69:3; ISSN AERNA
Country of Publication:
United States
Language:
English