Steinbuks, JevgenijsNeuhoff, Karsten2014-06-262014-06-262014-06https://hdl.handle.net/10986/18809To assess how capital stocks adapt to energy price changes, it is necessary to account for the impacts on different vintages of capital and to account separately for price-induced and autonomous improvements in the energy efficiency of capital stock. The results of econometric analysis for five manufacturing industries in 19 OECD countries between 1990 and 2005 indicate that higher energy prices resulted in smaller energy use due to both improved energy efficiency of capital stock and reduced demand for the energy input. The investment response to energy prices varied considerably across manufacturing industries, being more significant in energy-intensive sectors. The results of policy simulations indicate that a carbon tax can deliver significant reductions in energy consumption in the medium run with modest declines in energy-using capital stock.en-USCC BY 3.0 IGOAGRICULTUREAPPROACHASSETSAVAILABILITYAVERAGE PRICEBARRIERS TO ENERGY EFFICIENCYBASE YEARBOILERCAPITAL ADJUSTMENTCAPITAL SERVICESCAPITAL STOCKSCAPITAL STRUCTURECARBON DIOXIDECARBON DIOXIDE EMISSIONSCARBON PRICECARBON TAXCLIMATECLIMATE CHANGECLIMATE CHANGE MITIGATIONCLIMATE CHANGE POLICIESCLIMATE POLICIESCLIMATE POLICYCOALCOMMERCECOMMODITY PRICESCOMPETITIVE PRODUCTCOMPETITIVENESSCONSUMERSCONSUMPTION OF ENERGYCRUDE OILCRUDE OIL PRICEDEFLATORSDEMAND ANALYSISDEMAND ELASTICITYDEMAND FOR ENERGYDEMAND RESPONSEDERIVED DEMANDDEVELOPMENT POLICYDIESELDISCOUNT RATEECONOMETRIC ANALYSISECONOMETRIC MODELSECONOMETRICSECONOMIC ANALYSISECONOMIC GROWTHECONOMIC IMPLICATIONSECONOMIC MODELSECONOMIC THEORYECONOMICSECONOMICS LITERATUREECONOMY POLICYEFFICIENCY IMPROVEMENTEFFICIENCY IMPROVEMENTSELECTRICITYEMISSIONENDOGENOUS VARIABLESENERGY CARRIERENERGY CARRIERSENERGY CONSUMPTIONENERGY COSTSENERGY DEMANDENERGY DEMAND MODELENERGY ECONOMICSENERGY EFFICIENCYENERGY EFFICIENCY GAPENERGY EFFICIENCY IMPROVEMENTSENERGY EXPENDITUREENERGY INPUTENERGY INTENSITYENERGY POLICYENERGY PRICEENERGY PRODUCTSENERGY SAVINGSENERGY USEENERGY-SAVING TECHNOLOGIESENVIRONMENTAL ECONOMICSEQUATIONSEXCHANGE RATESEXPECTED RETURNSEXPECTED VALUEEXPENDITURESEXTERNALITIESFACTOR DEMANDFACTOR PRICESFACTORS OF PRODUCTIONFINANCIAL SUPPORTFIXED INPUTSFOSSILFOSSIL FUELFOSSIL FUEL CONSUMPTIONFOSSIL FUEL EMISSIONSFUEL DEMANDFUEL OILFUEL PRODUCTSFUELSFUNCTIONAL FORMSGASOLINEGASOLINE PRICESGASOLINE TAXGOVERNMENT PURCHASESGREENHOUSE GASGREENHOUSE GAS EMISSIONSGREENHOUSE GASESHEATING SYSTEMHIGHER ENERGY PRICESHUMAN CAPITALIMPROVEMENTS IN ENERGY EFFICIENCYINCOMEINPUT PRICESINTEREST RATEINTERNATIONAL COMPETITIVENESSINTERNATIONAL TRADEINVESTMENT DECISIONSINVESTMENT OPPORTUNITIESLABOR MARKETSLIKELIHOOD FUNCTIONMARKET BARRIERSMARKET STRUCTUREMONETARY ECONOMICSNATURAL GASNOMINAL INTEREST RATEOBSOLESCENCEOILOIL DEMANDOIL EQUIVALENTOPTIMIZATIONPATERNALISMPETROCHEMICAL INDUSTRYPETROLEUMPETROLEUM PRODUCTSPOLICY MAKERSPOLITICAL ECONOMYPORTFOLIOPOWERPOWER PLANTPRICE CHANGEPRICE CHANGESPRICE ELASTICITYPRICE INCREASEPRICE INCREASESPRICE POLICIESPRODUCT MARKETSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION INPUTSPRODUCTIVITYPROFIT MAXIMIZATIONPURCHASINGPURCHASING POWERRANDOM WALKREGULATORY POLICIESRELATIVE PRICESREPUBLICRESIDENTIAL ENERGYRETURNS TO SCALESCENARIOSSUBSTITUTESUBSTITUTESSUBSTITUTIONTAX POLICIESTHERMAL EFFICIENCYTHERMAL SYSTEMTOTAL OUTPUTUSE OF CAPITALVARIABLE COSTVARIABLE INPUTSWAGES10.1596/1813-9450-6929