ENERGY SUBSTITUTION IN U.S. MANUFACTURING.

The article focuses on the U.S. manufacturing sector which accounts for more than one fourth of annual energy consumption in the U.S. The apparent differences in energy consumption across industries indicate that the interrelationships between the demands for each type of energy should be examined o...

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Detalles Bibliográficos
Publicado en:Review of Economics & Statistics Vol. 59; no. 4; pp. 381 - 389
Autor principal: Halvorsen, Robert
Formato: Artículo
Publicado: MIT Press Nov77
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:The article focuses on the U.S. manufacturing sector which accounts for more than one fourth of annual energy consumption in the U.S. The apparent differences in energy consumption across industries indicate that the interrelationships between the demands for each type of energy should be examined on an industry-by-industry basis. Complete systems of energy demand equations are estimated for each standard industrial classification two-digit manufacturing industry. Duality theory is used to derive the systems of demand equations from flexible cost functions which impose minimal a priori restrictions on the estimated elasticities of demand. Estimation of demand functions derived from translog unit cost functions provides estimates of elasticities of demand that are subject to minimal a priori restrictions. Disaggregation of the analysis to the two-digit industry level allows for variation across industries in the characteristics of demand for each type of energy. Estimated elasticities of demand vary both across industries and across types of energy. Aggregate manufacturing demand for each type of energy appears to be highly price responsive.