We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of...

We develop a general equilibrium model of trade with multiple countries and industries in the spirit of Eaton and Kortum (2002) and Bernard, Eaton, Jensen, and Kortum (2003). We structurally estimate the parameters of the model and calibrate it to data on 33 OECD countries and one country that...

Energy security and affordability are major concerns in the coming winter as Germany seeks substitutes for Russia’s energy supplies. We highlight the role of energy transition on its exposure to energy price shocks and its failure to include security considerations in its trading arrangements....

The energy system of the European Union has suffered major changes in the recent years. High energy prices, increased energy security concerns and heavy reliance on gas, oil, and main combustibles coming from Russia have the three most important features of the EU energy sector in 2022. The...

This paper estimates interfuel substitution elasticities in selected developing and industrialized economies at the national and sector levels. In doing so, it employs state-of-the-art techniques in microeconometrics, particularly the locally flexible normalized quadratic functional forms, and...

This paper estimates interfuel substitution elasticities in selected developing and industrialized economies at the national and sector levels. In doing so, it employs state-of-the-art techniques in microeconometrics, particularly the locally flexible normalized quadratic functional forms, and...