Costly capital reallocation and energy use
In time series data, energy use does not change much with energy price changes. However, energy use is responsive to international differences in energy prices in cross-section data across countries. In this paper we consider a model of energy use in which production takes place at individual plants...
| Autores: | , , |
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| Tipo de recurso: | informe técnico |
| Fecha de publicación: | 2001 |
| País: | España |
| Institución: | Universidad Complutense de Madrid (UCM) |
| Repositorio: | Docta Complutense |
| Idioma: | inglés |
| OAI Identifier: | oai:docta.ucm.es:20.500.14352/64470 |
| Acceso en línea: | https://hdl.handle.net/20.500.14352/64470 |
| Access Level: | acceso abierto |
| Palabra clave: | E22 E23 Q43 Uso de la Energía Precio Energy price Energy use Costly capital reallocation Number of plants Economía industrial |
| Sumario: | In time series data, energy use does not change much with energy price changes. However, energy use is responsive to international differences in energy prices in cross-section data across countries. In this paper we consider a model of energy use in which production takes place at individual plants and capital can be used either to directly produce output or to reduce the energy required to run the planto We assume that reallocating capital from one use to another is costly. This turns out to be crucial for the quantitative properties of the model to be in conformity with the low short-mn and high long-run elasticities of energy use seen in data. Furthermore, our model displays variations in capacity utilization that are in line with those observed during the period of major oil price increases. |
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