Rebound, directed technological change, and aggregate demand for energy

Abstract

We analyse the long-run role of energy in aggregate production. The factor share of energy has been remarkably constant, despite the relative decline in the price of energy. We analyse possible explanations for this observation, ruling out the idea that endogenous directed technological change has led to a failure of energy-augmenting technology to keep pace with labour augmenting technology. Instead we propose a model in which a combination of income and substitution effects has driven both shifts in consumption patterns towards existing energy intensive goods and the emergence of new such goods. (C) 2018 Elsevier Inc. All rights reserved.

Keywords

Energy; Technology; Directed technological change; Structural change; Rebound

Published in

Journal of Environmental Economics and Management
2018, Volume: 89, pages: 218-234

SLU Authors

• Hart, Robert

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

SDG7 Affordable and clean energy
SDG13 Climate action


UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1016/j.jeem.2018.03.002

Permanent link to this page (URI)

https://res.slu.se/id/publ/95769