Economic growth and the transition from traditional to modern energy in Sweden
(2013)- Abstract
- We examine the role of substitution from traditional to modern energy carriers and of
differential rates of innovation in the use of each of these in Sweden from 1850 to 1950.
We use a simple growth model with a nested CES production function and exogenous
factor augmenting technological change and carry out a growth accounting
decomposition based on the econometric results. Energy and energy augmenting
technological change contributed more than a third of the economic growth in this
period. Even though the rate of technical change was much larger for modern energy,
innovation in the use of traditional energy carriers contributed more to growth between
1850 and... (More) - We examine the role of substitution from traditional to modern energy carriers and of
differential rates of innovation in the use of each of these in Sweden from 1850 to 1950.
We use a simple growth model with a nested CES production function and exogenous
factor augmenting technological change and carry out a growth accounting
decomposition based on the econometric results. Energy and energy augmenting
technological change contributed more than a third of the economic growth in this
period. Even though the rate of technical change was much larger for modern energy,
innovation in the use of traditional energy carriers contributed more to growth between
1850 and 1890, since the cost share of traditional energy was so much larger than that
of modern energy in that period. However, after 1890 we find that modern energy
contributed much more to economic growth than traditional energy, but increasingly
labor augmenting technological change and capital accumulation became the most
important drivers of growth in the final decades of the period. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/4172980
- author
- Kander, Astrid LU and Stern, David LU
- organization
- publishing date
- 2013
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- energy transition, coal, modern energy, traditional energy
- pages
- 30 pages
- publisher
- CAMA Working Paper Series
- language
- English
- LU publication?
- yes
- id
- 825dd7d3-df7c-43f6-a470-3aed8c38fc10 (old id 4172980)
- alternative location
- https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2013-09/65_kander_stern.pdf
- date added to LUP
- 2016-04-04 10:18:20
- date last changed
- 2018-11-21 20:58:01
@misc{825dd7d3-df7c-43f6-a470-3aed8c38fc10,
abstract = {{We examine the role of substitution from traditional to modern energy carriers and of <br/><br>
differential rates of innovation in the use of each of these in Sweden from 1850 to 1950. <br/><br>
We use a simple growth model with a nested CES production function and exogenous <br/><br>
factor augmenting technological change and carry out a growth accounting <br/><br>
decomposition based on the econometric results. Energy and energy augmenting <br/><br>
technological change contributed more than a third of the economic growth in this <br/><br>
period. Even though the rate of technical change was much larger for modern energy, <br/><br>
innovation in the use of traditional energy carriers contributed more to growth between <br/><br>
1850 and 1890, since the cost share of traditional energy was so much larger than that <br/><br>
of modern energy in that period. However, after 1890 we find that modern energy <br/><br>
contributed much more to economic growth than traditional energy, but increasingly <br/><br>
labor augmenting technological change and capital accumulation became the most <br/><br>
important drivers of growth in the final decades of the period.}},
author = {{Kander, Astrid and Stern, David}},
keywords = {{energy transition; coal; modern energy; traditional energy}},
language = {{eng}},
note = {{Working Paper}},
publisher = {{CAMA Working Paper Series}},
title = {{Economic growth and the transition from traditional to modern energy in Sweden}},
url = {{https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2013-09/65_kander_stern.pdf}},
year = {{2013}},
}