Energy price-induced and exogenous technological change: Assessing the economic and environmental outcomes

Surender Kumar, Shunsuke Managi

Research output: Contribution to journalArticle

37 Citations (Scopus)

Abstract

In this paper, we distinguish between factor/output substitution and shifts in the production technology frontier. Our model includes the by-products of carbon dioxide and sulfur dioxide emissions where the function requires the simultaneous expansion of good outputs and reductions in emissions. We estimate a directional output distance function for 80 countries over the period 1971-2000 to measure the exogenous and oil price-induced technological change. On average, we find substantial oil price-induced technological progress at the world level when long-term oil prices are rising, although the growth rate is more volatile in developed countries than in developing countries. The results also show that developed countries experience higher exogenous technological progress in comparison with developing countries, and the gap between the two has increased during the period of our study.

Original languageEnglish
Pages (from-to)334-353
Number of pages20
JournalResource and Energy Economics
Volume31
Issue number4
DOIs
Publication statusPublished - Nov 1 2009
Externally publishedYes

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Energy prices
Oil prices
Economics
Technological change
Developed countries
Developing countries
Technological progress
Sulfur dioxide
Carbon dioxide
Induced technological change
By-products
Output distance function
Substitution
Production technology
Factors

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Energy price-induced and exogenous technological change : Assessing the economic and environmental outcomes. / Kumar, Surender; Managi, Shunsuke.

In: Resource and Energy Economics, Vol. 31, No. 4, 01.11.2009, p. 334-353.

Research output: Contribution to journalArticle

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