The effects of electricity and fuel prices on Swedish industry: A panel VAR approach

Sammanfattning

In this paper, we empirically examine the dynamic effects of electricity and fuel price changes on factor demand, utilizing detailed firm-level data from the Swedish manufacturing industry spanning 2004-2022. We employ a panel vector autoregressive model to analyze factor inputs and their associated prices. Our findings indicate that the demand for electricity and fuel is inelastic both immediately following a price change and over the following five years. Additionally, our results show that energy price shocks generally do not have statistically significant effects on labor demand, nor do they indicate any significant inter-fuel substitution.

Nyckelord

Factor demand; Climate policy; Employment; Manufacturing

Publicerad i

Energy Economics
2025, volym: 152, artikelnummer: 109025
Utgivare: ELSEVIER

SLU författare

• Lundgren, Tommy

  • Institutionen för skogsekonomi, Sveriges lantbruksuniversitet
    
  • Centrum för Miljö- och Naturresursekonomi (CERE)

UKÄ forskningsämne

Nationalekonomi

Publikationens identifierare

• DOI: https://doi.org/10.1016/j.eneco.2025.109025

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/144874