Substitution between energy and nonenergy inputs in US manufacturing located within metropolitan areas

Thesis/Dissertation · Wed Jan 01 04:00:00 EST 1986

OSTI ID:6815093

Carnevale, J T

This study investigates the response of US manufacturing located within metropolitan areas to price increases in energy and nonenergy inputs. The nature of the response being investigated concerns factor and fuel substitution. This study also provides some insight regarding regional differences in the substitution response of manufacturers. A sound theoretical and statistical base for investigating the substitution possibilities is provided by previous research in this area. A translog unit cost function is used in a two-stage optimization process - optimization of an energy subfunction, then optimization of an aggregate production function specified to include labor, capital, and an index representing all energy. Statistical estimation of the model uses an approach based on a method introduced by Zellner in his discussion of seemingly-unrelated equations. This research enhances the evidence regarding substitution possibilities especially with respect to the capital-energy relationship. The unit of analysis is the SMSA, which distinguishes it from previous studies that used much more aggregated data.

• Research Organization: Syracuse Univ., NY (USA)
• OSTI ID: 6815093
• 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
CAPITAL
ECONOMIC ELASTICITY
ENERGY SUBSTITUTION
ENERGY SUBSTITUTION EQUIVALENT
LABOR
MANUFACTURING
OPTIMIZATION
URBAN AREAS