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Energy Journal Issue

The Energy Journal
Volume 2, Number 2

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Regional Growth and Energy Determinants: Implications for the Future

T. R. Lakshmanan

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-1View Abstract

Energy is used in the production, transportation, and delivery of all goods and services, and is thus crucial to the welfare of a modern industrial society. Recent problems with energy, such as higher prices and the uncertainty of supplies, have consequently had adverse effects on industrial input prices, transport budgets, and the cost of living. These effects, in turn, have prompted a variety of adjustments, such as energy conservation-through reductions in energy intensity and through acquisition of energy efficient capital stock-and substitution of cheaper and more abundant fuels. Since some aspects of fuel switching lead to significant shortfalls in environmental quality, environmental considerations may constrain future energy developments.

Policy Implications of Energy Vulnerability

James L. Plummer

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-2View Abstract

The research of the Energy Vulnerability Modeling Project has concluded that the oil stockpile premium probably lies in the range of $20 to $40 per barrel, and the oil import reduction premium in the range of $5 to $20 per barrel.ENERGY POLICY VS. OIL POLICYSince the price of oil Btu's is three to four times the price of coal Btu's, energy Btu's are definitely "not created equal." If an oil import reduction premium of $5 to $20 is added on top of the price of domestic oil, the inequality grows much larger.

Aggregate Elasticity of Energy Demand

EMF 4 Working Group

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-3View Abstract

The first EMF study, "Energy and the Economy," produced estimates of the aggregate elasticity of substitution for primary energy implicit in six models of energy and the economy.' In that study, the working group identified the importance of the aggregate elasticity and called for an examination of more detailed demand models. During its review of the study, the EMF Senior Advisory Panel cited the importance of a careful investigation of energy demand models to clarify estimates of the aggregate elasticity. The present study is a response to those suggestions.

An Analysis of the Supply of Oil

Ali M. Reza

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-4View Abstract

The demand for oil has been studied more extensively than the supply of oil, perhaps because the theory underlying the demand for oil is more developed. But a better understanding of the supply of oil is also necessary in our analysis of the oil market, and this article is an effort in that direction. More specifically, in this article we are interested in determining the shape of the supply of oil for an oil-exporting nation and the factors that cause this supply to change; upon aggregation of such individual supplies OPEC's supply can then be obtained.

Sources of Deep Coal Mine Productivity Change, 1962-1975

Joe G. Baker

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-5View Abstract

The purpose of this article is to investigate the causes of labor productivity decline in bituminous deep mines during the 1970s. Prior to 1970, coal mining was a leading industry in productivity growth: average deep mine labor productivity increased from 5.8 tons per miner per shift in 1950 to 15.6 tons per miner per shift in 1969. Since 1969, average labor productivity has fallen every year to a 1977 level of 8.7 tons per miner per shift.

Interfuel Substitution - Upper Bound Estimates

Brian Sullivan

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-6View Abstract

The degree to which alternative energy sources can be substituted for each other is an important consideration in several energy policy areas. This article examines the issue of interfuel substitution within a very limited framework, namely, the capability of the steam electric industry to switch among coal, oil, and natural gas in plants able to bum all three fuels. In this sense, we claim that our substitution possibility estimates will be upper bounds, since the necessary capital is already in place to accommodate each fuel. Section II describes the theoretical model used in describing the behavior of steam electric plants. Section III discusses the justification of the empirical technique presented; Section IV discusses this study's data and presents results; Section V discusses the implications of these results.

Multimarket, Multitechnology, Multiattribute Technological Forecasting

Barry G. Silverman

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-7View Abstract

This model was developed to provide a simplified yet systematic approach to the estimation of complex market penetration problems. Specifically, the model permits the decision maker to determine simultaneously the market penetration of several technologicalinnovations, under conditions consisting of (1) multiple market applications for each technological innovation, and (2) numerous competing technologies in each market application. Availability of this type of model is critical in a field such as energy, where an "explosion" of technological ideas into the marketplace appears to be imminent.

Energy, Entropy, and Economic Analysis: Some New Directions

David A. Huettner

DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No2-8View Abstract

The relationships between energy analysis, entropy analysis, and economic analysis have been intensely debated over the past decade, and a variety of conflicting claims have been made concerning the strengths and weaknesses of each approach. Recent articles' indicate a growing general agreement that energy content valuation is an energy theory of value, and that net energy, entropy, and economic analysis all reach different conclusions.