RT Journal Article
T1 Costly Capital Reallocation and Energy Use
A1 Díaz, Antonia
A1 Puch, Luis A.
A1 Guilló, M. Dolores
AB 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 plant. 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-run and high long-run elasticities of energy use seen in data.
PB Elsevier
SN 1094-2025
YR 2004
FD 2004
LK http://hdl.handle.net/10016/4934
UL http://hdl.handle.net/10016/4934
LA eng
DS e-Archivo
RD 27 abr. 2024