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Machines and Energy. Energy Capital ratios in Europe and Latin America 1875 - 1970

Ducoing, Cristián LU ; Gales, Ben ; Hölsgens, Rick and Rubio-Varas, Marí­a del Mar (2019) In Scandinavian Economic History Review 67(1). p.31-46
Abstract
The relationship between energy and capital is one of the most important aspects of modern economic growth. Machines need energy to produce all the goods we enjoy; energy would be far less useful for humankind in absence of machines. 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... (More)
The relationship between energy and capital is one of the most important aspects of modern economic growth. Machines need energy to produce all the goods we enjoy; energy would be far less useful for humankind in absence of machines. 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 stylised facts about the timing and causes of the different modernisation patterns of these regions and showing us some answers on the long-run relationship between energy consumption and capital accumulation. (Less)
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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
energy efficiency, Machines, Capital stock, Latin America, Europe
in
Scandinavian Economic History Review
volume
67
issue
1
pages
31 - 46
publisher
Routledge
external identifiers
  • scopus:85053041584
ISSN
1750-2837
DOI
10.1080/03585522.2018.1503968
project
Engines for sustainability. Horsepower prices, capital substitution and energy transitions in the long run
language
English
LU publication?
yes
id
d9d99ae5-a9cc-4a3a-8f31-5fb034addfdb
date added to LUP
2018-08-21 21:56:18
date last changed
2022-04-25 08:39:55
@article{d9d99ae5-a9cc-4a3a-8f31-5fb034addfdb,
  abstract     = {{The relationship between energy and capital is one of the most important aspects of modern economic growth. Machines need energy to produce all the goods we enjoy; energy would be far less useful for humankind in absence of machines. 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 stylised facts about the timing and causes of the different modernisation patterns of these regions and showing us some answers on the long-run relationship between energy consumption and capital accumulation.}},
  author       = {{Ducoing, Cristián and Gales, Ben and Hölsgens, Rick and Rubio-Varas, Marí­a del Mar}},
  issn         = {{1750-2837}},
  keywords     = {{energy efficiency; Machines; Capital stock; Latin America; Europe}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{31--46}},
  publisher    = {{Routledge}},
  series       = {{Scandinavian Economic History Review}},
  title        = {{Machines and Energy. Energy Capital ratios in Europe and Latin America 1875 - 1970}},
  url          = {{http://dx.doi.org/10.1080/03585522.2018.1503968}},
  doi          = {{10.1080/03585522.2018.1503968}},
  volume       = {{67}},
  year         = {{2019}},
}