TY - JOUR
T1 - Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries
AU - Kumar, Surender
AU - Fujii, Hidemichi
AU - Managi, Shunsuke
N1 - Funding Information:
This research was funded by the Grant-in-Aid for Specially Promoted Research [26000001B]; the Ministry of Education, Culture, Sports, Science and Technology (MEXT), Japan; Grant-in-Aid for Research Activity Start-up [26881006B], MEXT, Japan. The results and conclusions of this article do not necessary represent the views of the funding agencies.
Publisher Copyright:
© 2015 Taylor & Francis.
PY - 2015/3/22
Y1 - 2015/3/22
N2 - The elasticity of interfuel substitution between renewable and nonrenewable energy is key to establishing effective climate change policy. This is the first study to estimate the elasticity of substitution between different fossil fuels and renewable resources. We used 12 manufacturing industry-level datasets for the OECD countries from 1995 to 2009. We found a complementary relationship from nonrenewable energy to renewable energy in eight industries, whereas a substitute relationship was maintained for four industries. In particular, the food and pulp industries had a strong complementary relationship.
AB - The elasticity of interfuel substitution between renewable and nonrenewable energy is key to establishing effective climate change policy. This is the first study to estimate the elasticity of substitution between different fossil fuels and renewable resources. We used 12 manufacturing industry-level datasets for the OECD countries from 1995 to 2009. We found a complementary relationship from nonrenewable energy to renewable energy in eight industries, whereas a substitute relationship was maintained for four industries. In particular, the food and pulp industries had a strong complementary relationship.
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U2 - 10.1080/00036846.2014.997922
DO - 10.1080/00036846.2014.997922
M3 - Article
AN - SCOPUS:84921295670
SN - 0003-6846
VL - 47
SP - 1438
EP - 1459
JO - Applied Economics
JF - Applied Economics
IS - 14
ER -
