Technological change, economies of scale, traded intermediate products, and substitution between energy and non-energy inputs in the US manufacturing sector

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1982

OSTI ID:5908075

Haji Mohamadzadeh, A

In recent multi-input studies of energy demand in US manufacturing, the most-frequent model specification has consisted of employing a static profit-maximization framework defined over inputs of capital, labor, gross energy, gross materials, and gross output (gross meaning that these inputs include intra-industry, inter-firm shipments of traded intermediate products). In such models, the prices of the energy and materials aggregate inputs must be treated as endogenous rather than exogenous variables as has been commonly assumed. Thus, in such gross models, the application of Shephard's Lemma to obtain Hicksian industry factor-demand functions is appropriate as shown by Samuelson (1953). This study considered and estimated an alternative model in which cost and factor-demand functions for US manufacturing and nonenergy manufacturing sectors (for 1947-1971 period) are conditional upon the level of output of these sectors delivered to final demand (i.e., net sector output). This net model framework provides a proper context for energy-policy discussion since we are usually concerned with the energy intensity of a given level of net output. For purposes of estimation (via duality) a translog cost function is specified as a second order Taylor-series approximation to the underlying production process. This study, then, presents estimates of two commonly used summary measures of price responsiveness for both sectors, namely, the factor price elasticities and the Allen partial elasticities of Substitution among inputs.

• OSTI ID: 5908075
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320300* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
DEMAND
ECONOMIC ELASTICITY
ENERGY DEMAND
FUEL SUBSTITUTION
MANUFACTURING
MATERIAL SUBSTITUTION
PRODUCTIVITY
TECHNOLOGY UTILIZATION