Impact of energy efficiency gains on output and energy use with Cobb–Douglas production function
✍ Scribed by Taoyuan Wei
- Publisher
- Elsevier Science
- Year
- 2007
- Tongue
- English
- Weight
- 146 KB
- Volume
- 35
- Category
- Article
- ISSN
- 0301-4215
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✦ Synopsis
A special issue of Energy Policy-28 (2000)-was devoted to a collection of papers, edited by Dr. Lee Schipper. The collection included a paper entitled ''A view from the macro side: rebound, backfire, and Khazzoom-Brookes'' in which it was argued that the impact of fuel efficiency gains on output (roughly, GDP) is likely to be relatively small by Cobb-Douglas production function. However, an error in the analysis leads to under-estimation of the long-term impact. This paper first provides a partial equilibrium analysis by an alternative method for the same case and then proceeds to an analysis on the issue in a two-sector general equilibrium system. In the latter analysis, energy price is internalized. Both energy use efficiency and energy production efficiency are involved.