Joint translog model of energy aggregation and industrial demand for energy in US manufacturing

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:7224878

Taheri, A A

This study builds on the work of Berndt and Christensen (1973b), Hudson and Jorgenson (1974), and Fuss (1977) by extending the (solo) price-aggregation model to incorporate the joint price/quantity aggregation of energy inputs, using the recently developed translog (Christensen et al., 1973) as (homothetic) aggregator models. The procedure represents the first step in a two-step optimization, which holds under the assumption of (homothetic) weak-separability, and generates aggregates that are internally consistent and first-step optimal. The two models are integrated via the theory of duality, and estimated indirectly by joint estimation of a complete system of derived fuel-share equations. One major advantage of this joint estimation is that, the complete system yields parameter estimates that are more efficient than those obtained by the (solo) price-aggregation model. It also leads to more-robust estimated models based on the same body of data. While the internally consistent energy aggregates have important applications in aggregate energy research, the aggregation model also provides an econometric model for empirical investigation of interfuel substitution responses in the US manufacturing.

• Research Organization: Illinois Univ., Chicago (USA)
• OSTI ID: 7224878
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320300* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
DEMAND
ENERGY DEMAND
ENERGY MODELS
FUEL SUBSTITUTION
INDUSTRY
MANUFACTURING
PRICES