The translog function is a flexible form but does not have good global properties. The CES function has good global properties but is not a flexible form. For energy demand models that should be valid in a large domain, global properties are important.

In this paper we use the Second Generation Model to develop an assessment of the energy and economic implications of achieving the goals of the Kyoto Protocol. We find that many of the details of the Protocol that remain to be worked out introduce critical uncertainties affecting the cost of...