Essays of interfactor and interfuel substitution and dynamic relationship between energy and economic growth : the case of Korea /
I investigated both interdictor and interfuse substitution for the case of Korea using translog cost function. l then investigated the dynamic relationship between the energy sector and economic growth in Korea using modern time series analysis. The information gained from these different forms of e...
| Main Author: | |
|---|---|
| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
1999.
|
| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=730829831&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | I investigated both interdictor and interfuse substitution for the case of Korea using translog cost function. l then investigated the dynamic relationship between the energy sector and economic growth in Korea using modern time series analysis. The information gained from these different forms of estimation provides energy policy implications for the efficient usage of energy in Korea. I analyzed interdictor and interfuse substitution separately in the separate model and then analyzed incorporation of interdictor and interfuse substitution in the incorporated model. For incorporation of interdictor and interfuse substitution, I employed two stage estimation to analyze the feedback effect between the two substitution effects. For the static model of interdictor substitution, the estimated elasticities in the separate model and the incorporated model are not significantly different. Both show a substitutability between capital and energy, and a complementarity between labor and energy. The model of dynamic adjustment shows a high value of adjustment coefficient and a substitutability between labor and energy. I also found an own price elasticity of energy which is negative. Concerning interfuel substitution analysts, I found that both the static and dynamic model yields negative signs on all estimated own price elasticities. With positive signs of cross price elasticities, I found all the fuels are substitutes. A sub-period analysis on interjector and interfuse substitution reveals an increasing pattern of substitutability between capital and energy and the dramatic decreasing pattern of complementarity between labor and energy after 1989. Using time series techniques, I investigated the short-run and long-run relationship among CO₂ emissions, energy price, and real GDP in the Korean economy. I found that there exists a long-run relationship among these variables, such that each variable shows a significant error correction adjustment to deviations from the long-run relationship. Findings from impulse response function analysis are a negative and persistent effect of changes in aggregate energy price on real GDP and a negligible effect of aggregate energy price on CO₂ emissions level. Variance decomposition analysis provides evidence that aggregate energy price shocks can explain a significant portion of each variable's forecast error variance. |
|---|---|
| Item Description: | Vita. "Major Subject: Economics". |
| Physical Description: | xii, 147 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 119-123). |