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The elasticity of substitution between energy and non-energy is a key parameter in quantifying distributional impacts of energy and environmental policies. However, the empirical results of energy substitution are contradictory. The source of discrepancies in the results remains controversial, which provides ample motivation for further interpretation. The present paper is to identify the discrepancies...
Energy substitution is considered as a key process to determine the economic outcome of decisions related to energy and environment policies. The sign and magnitude of energy substitution have been widely debated, and the results are divergent. This paper applies the translog cost function specification to estimate factor share equations based on the energy and non-energy inputs, whose coefficients...
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