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Abstract

Although energy substitution in U.S. manufacturing has been studied in great depth at the national level, little attention has been paid to the regional level. However, regions may differ in their use of energy for a variety of reasons. The main objective of this study is to estimate region-specific demands for energy using a dynamic model for two-digit SIC Code manufacturing sectors. We derive own and cross-price elasticities for energy for different regions and we compare them. We, thus, provide information which has implications for a region specific energy policy.

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