The demand for energy in Greek manufacturing

This paper considers an econometric approach to measuring substitutability of three types of energy, i.e. crude oil, electricity and diesel with capital and labour in the manufacturing sector of creek industry during the period 1970-1990. A general dynamic framework is developed under the assumption that the structure of the production process is weakly separable in capital, labour and energy aggregates. The translog total cost function is used to represent the production technology. The main advantages of the proposed dynamic structure are that it is both disaggregated in energy components and consistent with the neo-classical theory of production. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classifications: C51; D24; Q41.