Demand for energy in Zimbabwe industries: an aggregated demand analysis
DOI:
https://doi.org/10.17159/2413-3051/2006/v17i3a3274Abstract
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
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.
.png){kind=spacer}