Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries
نویسندگان
چکیده
Elasticity of interfuel substitution between renewable and non-renewable energy is a key to establish effective climate change policy.This is the first study estimating the elasticity of substitution between different fossil fuels and renewable resources. We use twelve manufacturing industry level data for the OECD countries over 1995 to 2009. We find complementally relationship from non-renewable energy to renewable energy in eight industries while substitute relationship holds for four industries. In particular, food and pulp industries have strong complementally relationship.
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