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Interfuel substitutions in the Great Britain's industry in the 1987-1993 period : a translog approach
[Les substitutions énergétiques dans l'industrie britannique sur la période 1987-1993 : une approche translog]

Author

Listed:
  • Georges L. Gonçalves

    (LATEC - Laboratoire d'Analyse et de Techniques Economiques [UMR 5601] - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

According to the Department of Trade and Industry (1994), the British consumption of fuel for manufacturing industry, over the period 1973-1993, may be characterized by, firstly, a substitution of oil by gas, and secondly, an increase of energy efficiency. This study attempts to tackle both phenomena by using an econometric approach, based upon translog interfuel substitution models. To do so, the « classic » translog model ought to be enhanced in order to capture the prospect of (1) a non-homothetic feature of the manufacturing production process, (2) energy efficiency -via the implementation of an embodied technical change specification, and (3) short run and long run fuel consumption evolution. The estimation, computed with data from 1987(Q1) to 1993(Q4), exhibits unexpected results, namely, a clear decrease of energy efficiency and the substitution of gas by oil.

Suggested Citation

  • Georges L. Gonçalves, 1996. "Interfuel substitutions in the Great Britain's industry in the 1987-1993 period : a translog approach [Les substitutions énergétiques dans l'industrie britannique sur la période 1987-1993 : une app," Working Papers hal-01526971, HAL.
    • Handle: RePEc:hal:wpaper:hal-01526971
    Note: View the original document on HAL open archive server: https://hal.science/hal-01526971
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