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Citation Information

Type Journal Article - Energy economics
Title Substitution and price elasticity estimates using inter-country pooled data in a translog cost model
Author(s)
Volume 28
Issue 5
Publication (Day/Month/Year) 2006
Page numbers 706-719
URL http://escholarship.org/uc/item/4g89926w
Abstract
Pooled data across several developing countries and the U. S. were used to estimate longrun
substitution and price elasticities in a translog framework for the paper, iron and steel, and
aggregate manufacturing industries. While the quality of the estimates varies across the several
industry-specific models, the results suggest higher values for these elasticities than appear
commonly used in integrated assessment models. Estimates of own-price elasticities of energy
range from - 0.80 to - 1.76 and are comparable to estimates from previous econometric studies in
the context of developed countries (- 0.77 to - 0.87). Substitution elasticities show wider variation
across countries and industries. For energy and capital they range from -1.96 to 9.80, for labor
and energy from 2.61 to 7.11, and for energy and material from - 0.26 to 2.07.

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