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Economic growth and the transition from traditional to modern energy in Sweden

Kander, Astrid LU and Stern, David LU (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:
author
organization
publishing date
type
Working Paper
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
2013-11-20 15:21:17
date last changed
2016-08-30 11:29:15
@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},
  keyword      = {energy transition,coal,modern energy,traditional energy},
  language     = {eng},
  note         = {Working Paper},
  pages        = {30},
  publisher    = {CAMA Working Paper Series},
  title        = {Economic growth and the transition from traditional to modern energy in Sweden},
  year         = {2013},
}