We use a translog cost function to model production in the Irish manufacturing sector over the period from 1991 to 2009. We estimate both own- and cross-price elasticities and Morishima elasticities of substitution between capital, labour, materials and energy. We find that capital and energy...

This paper explores the way technical progress and improvements in energy efficiency are captured when modelling OECD industrial energy demand. The industrial sectors of the developed world involve a number of different practices and processes utilising a range of different technologies....

Modelling price formation in electricity markets is a notoriously difficult process, due to physical constraints on electricity generation and transmission, and the potential for market power. This difficulty has inspired the recent development of bottom-up agent-based algorithmic learning...

In this paper, decisions regarding production in oil exporting countries are studied by means of theoretical analysis and empirical investigation. In particular, we aim at describing the relationship between oil production levels and changes in the world oil demand and prices.

This research tests the impact of changes in fuel price to explain fuel use by electric utilities. We employ a three-stage least squares model that explains changes in fuel use as a function of changes in three fuel prices. This model is repeated across sub-samples of data aggregated at the...

In competitive product markets, repeated interaction among producers with similar economic characteristics would be expected to result in convergence of their behaviors. If convergence does not occur, it raises fundamental questions related to the sustainability of heterogeneous competitive...

Employing the new regression tests for Convergence, Club Convergence and Clustering proposed by Phillips and Sul (2007), this paper models and analyses the behaviour of China's energy sectors. Energy market ‘convergence clusters’ are identified using new price data, and their regional...

Power systems with high shares of wind and solar power have to balance their intermittent nature. Pumped-hydro storage plants can provide the required flexibility, while thermal backup plants offer an alternative. This paper proposes a capacity planning model to describe the efficient technology...

In this paper we study the potential effects of Real-Time Pricing (RTP) of electricity on the need for long-run capacities in the Nordic Power markets. A characteristic of the Nordic Power market is the large variety of production technologies, of which hydro and nuclear power are capacity...

This paper investigates the substitutability between energy and capital in the manufacturing sectors of ten OECD countries since 1980 by applying a cost function approach that has been widely used to analyze industrial energy demand. First, we attempt to determine the source of the disagreement...