Demand for energy in Zimbabwe industries: an aggregated demand analysis

Authors

  • J C Nkomo Energy Research Centre, University of Cape Town, South Africa
  • H E Goldstein Department of Economics, University of Oslo, Norway

DOI:

https://doi.org/10.17159/2413-3051/2006/v17i3a3274

Abstract

This paper describes interfuel substitution for liquid fuel, coal and electricity in Zimbabwe manufacturing and mining using a translog cost function. Our data series spans over a 24 year period. To mitigate the short time span of this time series data, we partially pool time-series cross-section observations, and take into account the ‘random effects’ and ‘fixed effects’ framework in estimating regression equations. Estimated results are used to determine possibilities for interfuel substitution particularly given persistent increases in the price of liquid fuel. We use an aggregated demand approach as this should both sharpen our results and yield more efficient estimates.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Berndt, E.R. and Christensen, L.R 1973a. The internal

Structure of Functional Relationships: Separability,

Substitution and Aggregation. Review of Economic

Studies, Vol. 40, July.

Berndt, E.R. and Christensen, L.R 1973b. The Translog

Function and the Substitution of Equipment,

Structure and Labour in US Manufacturing 1929 –

Journal of Econometrics, March.

Christensen, L.R., Jorgensen, D.W., and Lau, L.T 1971.

Conjugate Duality and the Transcendental

Logarithmic Function. Econometrica, 39.

Christensen, L.R., Jorgensen, D.W., and Lau, L.T 1973.

Transcendental Logarithmic Production Frontier.

Review of Economics and Statistics, 55.

Diewert, W.E 1971. An Application of the Shephard

Duality Theorem: A Generalized Leontief Production

Function. Journal of Political Economy, 79.

Diewert, W.E 1973. Separability and a Generalization of

the Cobb-Douglas Cost, Production, and Indirect

Utility Functions. Working Paper, University of British

Columbia.

Diewert, W.E 1974. Applications of Duality Theory, (ed)

M, Intriligator and D Kendrick, Frontiers of

Quantitative Economics II, Amsterdam, North

Holland.

Field, B.C. and Allen, P.G1980. Substitution for Energy in

US Manufacturing. Review of Economics and

Statistics, Vol. 62.

Green, H.A.J 1964. Aggregation in Economic Analysis.

An Introductory Survey, Princeton, New Jersey,

Princeton University Press.

Greene, W.H 1993. Econometric Analysis, Macmillan

Publishing Company.

Griffin, J.M 1977. Interfuel Substitution Possibilities: A

Translog Application to Pooled Data. International

Economic Review, 18.

Magnus, J and Woodland, A. D 1980. Interfuel

Substitution Possibilities in Dutch Manufacturing: An

Error Components Approach’. Discussion Paper No.

-39, Department of Economics, University of

British Columbia.

Mundlak, Y 1978. On Pooling of Time-Series and CrossSection

Data. Econometrica.

Pindyck, R 1979. The Structure of World Energy

Demand, The MIT Press.

Uri, N 1982. The Demand for Energy in the U K. Bulletin

of Economic Research, Vol. 34 No. 1.

Uzawa, H 1962. Production Functions with Constant

Elasticities of Substitution. Review of Economic

Studies.

Downloads

Published

2006-08-01

How to Cite

Nkomo, J. C., & Goldstein, H. E. (2006). Demand for energy in Zimbabwe industries: an aggregated demand analysis. Journal of Energy in Southern Africa, 17(3), 39–48. https://doi.org/10.17159/2413-3051/2006/v17i3a3274