Is technological change biased toward energy? A multi-sectoral analysis for the French economy
Section snippets
Introduction and overview
Most energy-related problems share the following two characteristics: they are associated with the resource scarcity, and they are connected with the trends in economic development. While the former comes from the fact that the production of the energy used in both developed and developing countries is still mainly based on extraction and utilization of non-renewable natural resources (energy supply side), the later implies that, as far as energy is essential for production, the relationship
Data description
The models presented above are estimated on yearly French sectors data, coming from Input–Output tables published by French National Institute of Statistics and of Economic Studies (INSEE). Data for interest rate which is utilized to construct user cost of capital are obtained from Organisation for Economic Cooperation and Development (OECD). We decompose the French economy into 13 sectors according to two main criteria: (1) production technology employed in the sector; (2) degree of cleanness
Main results and discussion
In this section we present the estimation results for our state-space model. For this purpose we choose to provide different graphical analyses of the Kalman filter output. As a preliminary analysis, we report in Fig. 1 the results for three production factors, namely capital, labor and energy.6
Conclusions and future work
The main contribution of the present work to the question of direction of technical change might be the identification of the effect of technical progress in relation with different regulatory variables and exogenous structural variables on the demand for three main production factors, capital, labor and energy. First of all, the methodological framework presented in the present paper indicates that non-neutral technical change is present in the French economy. Taken as a whole, from the
Acknowledgment
Yasser Yeddir-Tamsamani thanks Agence de l'Environnement et de la Maîtrise de l'Energie (ADEME) for financial support.
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