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Machines, energy and economic growth : Energy Capital ratios in Europe and Latin America 1875 - 1970

Hölsgens , Rick; Ducoing, Cristian LU ; Rubio, Mar and Gales, Ben (2015) 11th European Historical Economics Society Conference, 2015
Abstract
The relationship between energy and capital is one of the most important relationships of modern economic growth. Machines need energy to produce all the goods we enjoy; energy without machinery is useless. However, the great majority of the economic models do not take into account the elasticities of substitution (or complementaries) between these two main variables. Actually, energy is absent in many growth models and discussions on diverging economic development paths. We approach this relevant issue from a new perspective: energy and capital relations during 100 years. We use the latest estimations of capital stock (machinery and equipment) and energy consumption for Latin America and compare them with those of Western Europe. The... (More)
The relationship between energy and capital is one of the most important relationships of modern economic growth. Machines need energy to produce all the goods we enjoy; energy without machinery is useless. However, the great majority of the economic models do not take into account the elasticities of substitution (or complementaries) between these two main variables. Actually, energy is absent in many growth models and discussions on diverging economic development paths. We approach this relevant issue from a new perspective: energy and capital relations during 100 years. We use the latest estimations of capital stock (machinery and equipment) and energy consumption for Latin America and compare them with those of Western Europe. The energy capital ratio (how much energy is used per unit of capital) could be a predictor of economic growth, thus providing some answers about the timing and causes of the different modernisation patterns of these regions and showing us some answers about the long run relationship between energy consumption and capital accumulation. (Less)
Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to conference
publication status
published
subject
keywords
capital stock, energy efficiency, energy , Latin America, Europe
pages
20 pages
conference name
11th European Historical Economics Society Conference, 2015
language
English
LU publication?
no
id
b48890f2-9921-424a-8a1c-f5f9dc740700
alternative location
http://www.ehes.org/ehes2015/papers/Ducoing_Gales_Holsgens_Rubio.pdf
date added to LUP
2017-11-03 09:37:41
date last changed
2017-11-03 10:27:01
@misc{b48890f2-9921-424a-8a1c-f5f9dc740700,
  abstract     = {The relationship between energy and capital is one of the most important relationships of modern economic growth. Machines need energy to produce all the goods we enjoy; energy without machinery is useless. However, the great majority of the economic models do not take into account the elasticities of substitution (or complementaries) between these two main variables. Actually, energy is absent in many growth models and discussions on diverging economic development paths. We approach this relevant issue from a new perspective: energy and capital relations during 100 years. We use the latest estimations of capital stock (machinery and equipment) and energy consumption for Latin America and compare them with those of Western Europe. The energy capital ratio (how much energy is used per unit of capital) could be a predictor of economic growth, thus providing some answers about the timing and causes of the different modernisation patterns of these regions and showing us some answers about the long run relationship between energy consumption and capital accumulation.},
  author       = {Hölsgens , Rick and Ducoing, Cristian and Rubio, Mar and Gales, Ben},
  keyword      = {capital stock,energy efficiency,energy ,Latin America,Europe },
  language     = {eng},
  pages        = {20},
  title        = {Machines, energy and economic growth : Energy Capital ratios in Europe and Latin America 1875 - 1970},
  year         = {2015},
}