Technical Change, Investment and Energy Intensity

Joint Program Report
Technical Change, Investment and Energy Intensity
Kratena, K. (2007)
Joint Program Report Series, 18 pages

Report 143 [Download]

Abstract/Summary:

This paper analyzes the role of different components of technical change on energy intensity by applying a Translog variable cost function setting to the new EU KLEMS dataset for 3 selected EU countries (Italy, Finland and Spain). The framework applied represents an accounting of technical change components, comprising autonomous as well as embodied and induced technical change. The inducement of embodied technical change is introduced by an equation for the physical capital stock that is a fixed factor in the short-run. The dataset on capital services and user costs of capital in EUKLEMS enables explaining capital accumulation depending on factor prices. The model can be used for explaining and tracing back the long-run impact of prices and technical change on energy intensity.

Citation:

Kratena, K. (2007): Technical Change, Investment and Energy Intensity. Joint Program Report Series Report 143, 18 pages (http://globalchange.mit.edu/publication/14467)
  • Joint Program Report
Technical Change, Investment and Energy Intensity

Kratena, K.

Report 

143
18 pages
2007

Abstract/Summary: 

This paper analyzes the role of different components of technical change on energy intensity by applying a Translog variable cost function setting to the new EU KLEMS dataset for 3 selected EU countries (Italy, Finland and Spain). The framework applied represents an accounting of technical change components, comprising autonomous as well as embodied and induced technical change. The inducement of embodied technical change is introduced by an equation for the physical capital stock that is a fixed factor in the short-run. The dataset on capital services and user costs of capital in EUKLEMS enables explaining capital accumulation depending on factor prices. The model can be used for explaining and tracing back the long-run impact of prices and technical change on energy intensity.