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

Kander, Astrid LU and Stern, David Ian (2014) In Energy Economics 46. p.56-65
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 economic growth 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 counterfactual simulation based on the econometric results. Even though the rate of technical change was higher 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... (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 economic growth 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 counterfactual simulation based on the econometric results. Even though the rate of technical change was higher 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 became the most important single driver of growth. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Industrial Revolution, Economic history, Technological change
in
Energy Economics
volume
46
pages
56 - 65
publisher
Elsevier
external identifiers
  • wos:000347579800006
  • scopus:84907742279
ISSN
0140-9883
DOI
10.1016/j.eneco.2014.08.025
language
English
LU publication?
yes
id
7aeb2330-00a2-4e66-a5ec-19d7bbfab495 (old id 4862900)
alternative location
http://www.sciencedirect.com/science/article/pii/S0140988314002072#
date added to LUP
2014-12-16 12:51:38
date last changed
2017-08-06 03:01:57
@article{7aeb2330-00a2-4e66-a5ec-19d7bbfab495,
  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 economic growth 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 counterfactual simulation based on the econometric results. Even though the rate of technical change was higher 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 became the most important single driver of growth.},
  author       = {Kander, Astrid and Stern, David Ian},
  issn         = {0140-9883},
  keyword      = {Industrial Revolution,Economic history,Technological change},
  language     = {eng},
  pages        = {56--65},
  publisher    = {Elsevier},
  series       = {Energy Economics},
  title        = {Economic growth and the transition from traditional to modern energy in Sweden},
  url          = {http://dx.doi.org/10.1016/j.eneco.2014.08.025},
  volume       = {46},
  year         = {2014},
}