Economic effects of the rise in energy prices: what have we learned in ten years

Conference · Tue May 01 04:00:00 EDT 1984 · Am. Econ. Rev.; (United States)

OSTI ID:7154650

Jorgenson, D W

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
• Conference Information: Journal Name: Am. Econ. Rev.; (United States) Journal Volume: 74:2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
DEMAND
ECONOMETRICS
ECONOMIC ELASTICITY
ECONOMIC IMPACT
ECONOMICS
ENERGY DEMAND
ENERGY EXPENSES
PRODUCTIVITY