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• W3169934059 abstract "How do markets economize on scarce natural resources? With an applica-tion to fossil energy, we emphasize technological change aimed at saving on the scarce resource. We develop quantitative macroeconomic theory as a tool for interpreting the past and thinking about the future. We argue, first, that aggre-gate U.S. data calls for a short-run substitution elasticity between energy and the capital/labor inputs that is near Leontief. Given this fact and an aggregate CES function, we note that energy-saving technical change took o right as the oil shocks hit in the 1970s. We rationalize this observation using a theory that views technical change as directed: it can be used to save on different inputs and, hence, the long-run substitutability between inputs becomes higher than Leontief. For our application, we estimate long-run dependence on fossil energy - measured by its factor share - to climb to a little below 10%; absent endogenous technical change directed toward energy-saving, it would go to 100%." @default.
• W3169934059 created "2021-06-22" @default.
• W3169934059 creator A5043826219 @default.
• W3169934059 creator A5059525183 @default.
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• W3169934059 date "2019-07-01" @default.
• W3169934059 modified "2023-09-27" @default.
• W3169934059 title "Directed technical change as a response to natural-resource scarcity" @default.
• W3169934059 hasPublicationYear "2019" @default.
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