Please use this identifier to cite or link to this item:
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: An investigation of issues relating to where energy should enter the production function
Author(s): Lecca, Patrizio
Swales, J Kim
Turner, Karen
Contact Email:
Keywords: General equilibrium
KLEM production function
Separability assumptions
Issue Date: Nov-2011
Date Deposited: 29-Aug-2012
Citation: Lecca P, Swales JK & Turner K (2011) An investigation of issues relating to where energy should enter the production function. Economic Modelling, 28 (6), pp. 2832-2841.
Abstract: This paper examines the impact of imposing different separability assumptions in the specifications of the standard hierarchical KLEM production function in a computable general equilibrium (CGE) model. The appropriate means of introducing energy to production functions has been a source of debate for a number of years. However, while modellers often subject results to parametric sensitivy analysis regarding the values associated with elasticities of substitution between inputs, it is rarely the case that the structure of the production function is subjected to testing. However, the chosen structure reflects the modeller's view about elasticity between different inputs and will have implications for model results wherever there are changes in relative prices. We illustrate our argument by introducing a simple demand shock to a CGE model of the Scottish economy (targeted at the energy supply sector) under different assumptions regarding the structure of the KLEM production function and separability assumptions therein.
DOI Link: 10.1016/j.econmod.2011.08.014
Rights: Publisher policy allows this work to be made available in this repository. Published in [name of journal] by [insert publisher]. The original publication is available at

Files in This Item:
File Description SizeFormat 
Lecca et al_Economic Modelling 2011_turner last.pdfFulltext - Accepted Version620.49 kBAdobe PDFView/Open

This item is protected by original copyright

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

The metadata of the records in the Repository are available under the CC0 public domain dedication: No Rights Reserved

If you believe that any material held in STORRE infringes copyright, please contact providing details and we will remove the Work from public display in STORRE and investigate your claim.